2026 (1) TMI 909

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....o the assessment years 2012-13 and 2016-17. The assessee had filed one appeal, challenging order dated 23.12.2024, levying penalty u/s 271D of the Act; another appeal challenging order of levy of penalty dated 23.12.2024 passed u/s 271E, as regards the assessment year 2012-13. The assessee had also filed another appeal challenging order of penalty dated 23.12.2024 passed u/s 271E of the Act, and yet another appeal challenging order of penalty dated 23.12.2024, imposing penalty u/s 271D of the Act, both relating to the assessment year 2016-17. Relevant provisions of law 2. Section 271D, reads as under:- "Penalty for failure to comply with the provisions of section 269SS. 271D. (1) If a person takes or accepts an....

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.... not be sustained. 5. Learned CIT(A) relied on decision by Hon'ble Apex Court in the case of Hissaria Brothers, 386 ITR 719-(2016) 74 taxmann.com 22, the ratio decidendi of which is that relevant date for determining the limitation period is the date of passing of the assessment order. 6. Applying the above said decision, Learned CIT(A) observed that herein the assessment orders having been passed on 29.03.2024, the order of penalties u/s 271D and E could be passed by 30.09.2024, the orders of penalty having been passed on 23.12.2024, were barred by limitation. Consequently, the penalties imposed on the assessee were deleted. 7. Learned AR for the assessee-respondent herein has submitted that in the case titled of Commissioner of I....

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....ing 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 Clause (a) was to be invoked, no necessity of Clause (c) would arise. 39. Thus, both on the ground that the transaction in question retention of sale price by the kachhaadhatiya did not amount to deposit and its utilisation and dealing with it at the instance of farmer constituents did not amount to repayment of loan or deposits willin the meaning of Section 269SS or Section 269T and on the ground th....

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.... penalty shall be passed before the expiry of the financial year in which the proceedings, in the course of which action for imposition of penalty has been initiated, are completed, or within one year from the end of the financial year in which the order of 76% [the Joint Commissioner (Appeals) or] the Commissioner (Appeals) is received by the "[Principal Chief Commissioner or] Chief Commissioner or "[Principal Com-missioner or] Commissioner, whichever is later;] (b) in a case where the relevant assessment or other order is the subject-matter of revision under section 263 78 [ or section 264], after the expiry of six months from the end of the month in which such order of revision is passed; (c) in any other case, after th....