2025 (3) TMI 992

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....ER PER NAVEEN CHANDRA, A.M:- This appeal by the assessee is preferred against the order of the NFAC, Delhi dated 14.02.2023 for A.Y 2017-18. 2. The sum and substance of the grievance of the assessee is that the impugned penalty of Rs. 67 lakhs imposed by the Assessing Officer and confirmed by the ld. CIT(A) is void ab initio and barred by limitations. 3. Briefly stated, the facts of th....

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....eved assessee is in appeal before us and at the very outset, the ld. counsel for the assessee submitted that the penalty is time barred. 6. The ld. counsel for the assessee submitted that there were no assessment proceedings pending in the case and under the provisions of section 275(1)(c) of the Act, penalty order has to be made six months from the date of initiation of penalty proceedings. Th....

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....e relied upon the decision of the Hon'ble Supreme Court in the case of Kalyan Kumar Ray 191 ITR 634. 8. On the other hand, the ld. DR vehemently argued that the provisions of section 275(1)(c) of the Act provides for one year from the end of the F.Y. in which penalty is initiated. Therefore, in the instant case, as the penalty order has been passed within the end of that year, the same cann....

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.... recommending the issuance of the SCN. While it is true that the ACIT had the discretion whether or not to issue the SCN, if he did decide to issue a SCN, the limitation would begin to run from the date of letter of the AO recommending 'initiation' of the penalty proceedings. 10. In the present case, the limitation in terms of Section 275 (1) (iii) of the Act began to run on 23rd ....