TaxTMI 
TaxTMI 
2025 (1) TMI 1496
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....umstances of the case herein and in the interest of justice." 2. The petitioner is a partnership firm constituted on 20.12.2017 and at the material time was engaged in a business of acting as real estate brokers. It is stated that the petitioner had acted for various real estate companies including Gaursons Group of Companies (hereafter the Gaursons Group). 3. On 02.03.2022, a search was conducted under Section 132 of the Income Tax Act, 1961 (hereafter the Act) in the premises of the entities comprising the Gaursons Group and other related persons. Simultaneously, a search was also conducted in the premises of the petitioner as well as in the premises of its constituted partners. 4. The petitioner filed his return for the relevant assessment year (AY) 2022-23 after the search was conducted. The said return was taken up for scrutiny and the proceedings culminated in an assessment order dated 28.03.2024. The net profit of the assessee was determined at Rs. 22,29,92,302/- against a returned income of Rs. 9,77,91,650/-. In addition, the Assessing Officer (AO) also decided that the penalty proceedings be initiated in respect of the cash allegedly received by the petitioner. ....
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.... 3. Detailed discussion with regard to the nature and quantification of the evidences which are related to violation of provisions of Section 269ST of the I. T. Act, 1961 has been made in the assessment order, copy of the same is being provided for the kind reference. Further, relevant part of seized material that has been relied upon in the case of the assessee is being provided in the soft copy in a pendrive. 4. Since the amount of cash received is more than Rs. 2,00,000/- in respect of transaction relating to one event, therefore, information is being shared with your office for initiation of penalty u/s 269ST r.w.s 271DA in the above case. 5. Submitted for necessary action at your end. Yours faithfully, Sd/- (Mohit Garg) Dy. Commissioner of Income Tax, Central Circle-15, New Delhi" 7. Respondent no.3 did not take any immediate steps on receipt of the said reference. However, on 09.09.2024 the concerned authority issued a notice under Section 274 read with Section 271DA of the Act calling upon the petitioner to show cause why penalty not be imposed under Section 271DA of the Act. Additionally, the petitioner was also call....
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....is a past tense of the word 'initiate'. The Shorter Oxford English Dictionary defines the word 'initiate' as under: "to begin, commence, enter upon, to introduce, set going, originate." 16. In Webster's Third New International Dictionary, the word 'initiate' has, inter alia, been defined thus: "to begin or set going: make a beginning of: perform or facilitate the first actions, steps, or stages of:" 17. The Words and Phrases (Permanent Edition) defines 'initiate' to mean: "an introductory step or action, a first move; beginning; start, and to initiate as meaning - to commence." 18. In Om Prakash Jaiswal v. D.K. Mittal & Anr.: (2000) 3 SCC 171, the Supreme Court had considered the meaning of the expression 'initiate any proceedings for contempt' by referring to the dictionary meaning of the said word. It is relevant to refer to paragraph 10 of the said decision, which is set out below: "10. The expression-"initiate any proceedings for contempt" is not defined in the Act. Words and Phrases (Permanent Edition) defines "initiate" to mean - an introductory step or action, a first move; beginning; start, and "to initiate" as ....
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....sessee in violation of the provisions contained in Section 269T, then assessee becomes liable to pay penalty. The penalty which can be imposed by the concerned officer would be the sum equal to the amount of loan or deposit for the specified advance so repaid. This provision has been made in sub-section 1 of section 271E. Sub-Section 2 of section 271E provides that the penalty imposable under subsection 1 of the said section shall be imposed by the Joint Commissioner. 19. It is based on the language of sub-section 2 of section 271E that Mr. Kumar argues that the AO could not have triggered the penalty proceedings and hence, the limitation would commence, as prescribed, only from the date when the JCIT issued the notice. 20. Therefore, based on this line of argument, Mr. Kumar says that the limitation in this case expired only on 31.12.2011, and since the penalty order was passed on 30.12.2011, it was within the prescribed period of limitation, as being the latter of the two dates, as indicated in Section 275 (1) (c) of the Act. 21. In our view, this argument, if accepted, would lead to absurdity, the reason being that once the appellant/revenue decides to....
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.... not from the date on which the reference was made for initiation of such proceedings. 16. We are not persuaded to accept the aforesaid contention. A plain language of Section 275(1)(c) of the Act indicates that the time limit for completion of the action for imposition of penalty is to be reckoned from: (a) the end 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 (b) six months from the end of the month in which action for imposition of penalty is initiated, whichever expires later. 17. Undoubtedly in the present case, the proceedings during the course of which decision for that proceedings for levy of penalty under Section 269ST of the Act should be initiated, had taken place during the financial year 2023-24 as it is reflected in the assessment order dated 28.03.2024. However, the assessment order clearly reflects that the penalty proceedings are being initiated separately. The order records that "separate reference is being sent to the office of Addl. CIT-Central Range-04, Delhi for initiation of penalty proceedings U/s 269ST of the IT Act, 1961". The AO has d....