2024 (12) TMI 316

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....ead 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. 12,89,31,909/- in contravention of the provisions of Section 269ST of the Act, pertaining to the assessment year (AY) 2021-22. 2. It is the petitioner's case that the impugned order is barred by limitation. The petitioner is a partnership firm, constituted on 01.01.2017. The petitioner firm was engaged in the business of acting as a real estate broker and has acted as a broker for various developers, including Gaursons Group of Companies (hereafter Gaursons Group). 3. On 02.03.2022, a search was conducted under Section 132 of the Act in the....

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....ted question to be examined 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 initi....