2025 (7) TMI 1591

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....6.2024 for Assessment Years 2014-15 and 2015-16. 2. Since the issues are common and the appeals are connected, therefore, the same are heard together and being disposed off by this common order. 3. At the outset of the hearing, ld. AR of the assessee brought to our notice that penalty proceedings under section 271C of the Income-tax Act, 1961 (for short 'the Act') in the case of the assessee has been initiated on the basis of reference received from ACIT, Circle 76(1) on 10.10.2016 received by the Addl.CIT, Range 76, New Delhi. Therefore, ld. Addl.CIT issued show-cause notice u/s 271C r.w.s. 274(1) of the Income-tax Act, 1961 (for short 'the Act') issued on 10.07.2017. He submitted that it is settled position of law that date on which....

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.... & Finlease Ltd., 2015 (10) TMI 1281 - Delhi High Court (iii) Mandeep Kaur versus the JCIT Range - 30, New Delhi, 2025 (3) TMI 992 - ITAT Delhi (iv) ITO, TDS Ward - 75 (2), New Delhi versus M/s. Kushal Infra Project Industries India Ltd., 2025 (1) TMI 908 - ITAT Delhi (v) The Additional Commissioner of Income tax, TDS, Range-3, Bengaluru versus Wiproge Healthcare Pvt. Ltd., 2021 (5) TMI 379 - ITAT Bangalore (vi) Asst. Commissioner of Income tax, Circle-76 (1), New Delhi versus M/s Parsons Brinckershoff India Pvt. Ltd., 2022 (3) TMI 77 - ITAT Delhi." 4. Accordingly, ld. AR prayed that in view of the above submissions and judicial pronouncements, it is evident that penalty order passed u/s 271C of the Ac....

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....a Pvt. Ltd. (supra) wherein the coordinate Bench has decided the issue in favour of the assessee by observing as under :- "4. As per provisions of section 275(1 )(c) of the Act, we find that there are two distinct periods of limitation for passing of penalty order is provided and one that expires later will apply. One is the end of the financial year in which the quantum proceedings are completed. In the instant case, the quantum proceedings were completed on 26.03.2014 and hence one deadline would be 31.03.2014. The second date would be expiry of 6 months from the month in which penalty proceedings were initiated. The dispute in the instant appeal is to give proper meaning for the expression 'expiry of 6 months from the month ....

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....tation period mentioned in provisions of section 275(1 )(c) of the Act was subject matter of interpretation in the context of levy of penalty u/s 271 E of the Act. The relevant operative portion of the said order is reproduced below:- 7. Mr. Kamal Sawhney, learned Senior standing counsel appearing for the Revenue submitted that the AO has no power to initiate the penalty proceedings under Section 271-E of the Act and it was only the Joint CIT who could have done so. Therefore, for the purpose of limitation under Section 275 (1) (c), the relevant date should be the date on which notice in relation to the penalty proceedings were issued. In the present case, as the Additional CIT issued notice to the Assessee on 12th March 2012, the ....

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....so (1) of S. 275 cannot be attracted to such proceedings. If that were not so cl. (c) of S. 275(1) would be redundant because otherwise as a matter of fact every penalty proceeding is usually initiated when during some proceedings such default is noticed, though the final fact finding in this proceeding may not have any bearing on the issues relating to establishing default e.g. penalty for not deducting tax at source while making payment to employees, or contractor, or for that matter not making payment through cheque or demand draft where it is so required to be made. Either of the contingencies does not affect the computation of taxable income and levy of correct tax on chargeable income; if cl. (a) was to be invoked, no necessity of cl.....