2024 (12) TMI 317

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....A read with Section 274 of the Income Tax Act, 1961 (hereafter the Act) as well as an order dated 17.10.2024 (hereafter the impugned order) passed under Section 271DA of the Act, imposing a penalty of Rs. 14,63,23,861/- in respect of the assessment year (AY) 2020-21 in contravention of the provisions of Section 269ST of the Act. 2. It is the petitioner's case that the impugned order is barred by limitation. 3. The petitioner is a partnership firm, which was constituted on 01.01.2017. The petitioner firm is engaged in the business of acting as a real estate broker and claims that it acts as a broker for various developers, including Gaursons Group of Companies (hereafter Gaursons Group). 4. On 02.03.2022, a search was conducted under Sect....

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....xamined is whether the impugned order was passed beyond the period of limitation as prescribed under Section 275 (1) (c) of the Act. The said provision is set out below:- "275. Bar of limitation for imposing penalties. (1) No order imposing a penalty under this Chapter shall be passed- (a) xxxxxxx (b) xxxxxxx; (c) in any other case, after the expiry of the financial year in which the proceedings, in the course of which action for the imposition of penalty has been initiated are completed, or six months from the end of the month in which action for imposition of penalty is initiated, whichever period expires later." 7. The controversy, as to the date on which the penalty proceedings are to be construed as initiated, is no longer r....