2025 (11) TMI 1591

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....e following grounds of appeal: 1. The order of the learned Commissioner of Income Tax (Appeals) is against the law, weight of evidence and probabilities of case. 2. The learned CIT(A) erred in confirming the order U/s 270A of the IT Act levying penalty of Rs. 69,342/- without appreciating the fact that the penalty is levied in violation of provision of section 275(1)(c ) of the IT Act i.e. the order u/s 143(3) r.w.s 143(3A) and 143(3B) of the IT Act, was passed on 04-12-2020 therefore the penalty should have been levied on OR before 30-06-2021, as the penalty is levied on 29-12-2021 therefore barred by time limits. 3. The appellant craves leave to add to, amend OR modify the above grounds of appeal either before O....

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....ich the penalty was initiated i.e. 30.06.2021 in the case of the assessee. 6. The Ld.AR accordingly submitted that, since the provision mandates that whichever period expires later shall be considered, the outer limit for passing the penalty order in this case would be 30.06.2021. Hence, the Ld. AR submitted that the penalty order was passed on 30.12.2021, i.e., after the expiry of the limitation period, and therefore, the same is barred by limitation. The Ld. AR accordingly prayed that the penalty order be quashed as invalid and time-barred. 7. Per contra, the Learned Departmental Representative (Ld. DR) submitted that the date of passing of the assessment order cannot be treated as the date of initiation of penalty. Instead, the dat....

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....provision, it is evident that two periods are relevant for determination of limitation and the later of the two shall be taken as the outer limit for passing the penalty order: a. The expiry of the financial year in which the proceedings, in the course of which penalty was initiated, are completed; and b. Six months from the end of the month in which the action for imposition of penalty is initiated. 10. There is no dispute about the fact that the assessment order was passed by the Ld. AO on 04.12.2020. We have also gone through the para no.7 of the order of the Ld. AO which is to the following effect: "7. I am satisfied that the assessee underreported his income to the extent of Rs. 2,36,141/-, hence penalty u....