Скачать или смотреть Whether limitation period for penalty u/s 275 is to be seen from, when notice u/s 274 is issued?

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[2025] 483 ITR 248 (Delhi High Court)

Principal Commissioner of Income-Tax
V.
Thapar Homes Ltd.

Rajiv Shakdher and Girish Kathpalia JJ.

11.09.2023

Playlist: 275

275: Bar on limitation for imposing penalties

A.Y: 2008-09/Assessee

Question: Whether limitation period for penalty u/s 275 is to be seen from, when notice u/s 274 is issued?

1. In case of penalty the provision concerning limitation is section 275(1)(c) of the Income-Tax Act, 1961.

2. A perusal of the provision shows that there are two limbs embedded therein, for the purpose of calculating the end date when the limitation expires, depending on whichever is the later date.

3. The first limb points in the direction that the end of the financial year in which the quantum proceedings are taken out, in the course of which action for imposition of penalty is initiated are completed.

4. This would provide the end date when limitation would expire under the first limb.

5. According to the second limb limitation is to be calculated having regard to end of the month in which the action taken for imposition of penalty is initiated.

6. Thus, under this limb, limitation would commence from end of the month in which the action for imposition of penalty is initiated (except where the two dates coincide).

7. The prescribed period of limitation i.e. six months will run from this date.

8. Once the department decides to initiate penalty proceedings against the assessee, it is, incumbent upon it to keep an eye on the limitation period prescribed u/s 275(1)(c).

9. The Department can not extend the period of limitation by deciding at its whims and fancies when the notice has to be issued.

10. The notice u/s 274 should be issued before the period of limitation.

11. Held that although the decision to initiate penalty proceedings was found embedded in the assessment order dated 31.12.2010 & approval to frame assessment order was given prior to that date, the notice was issued only on 13.06.2011.

12. The notice was barred by limitation.

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Link for some important videos:

1) WHETHER TRIBUNAL CAN REMAND MATTER IN ENTIRETY WHERE DEPARTMENT DID NOT FILE CROSS APPEALS?- https://www.youtube.com/watch?v=gkqMk...

2) WHETHER ASSESSEE HAS ALSO TO CHALLENGE THE FINDINGS OF THE A.O THAT NOTICE HAS BEEN SERVED?- https://www.youtube.com/watch?v=XbZWh...

3) WHETHER EXTENDED TIME LIMIT U/S 149(1)(b) CAN BE USED ON THE BASIS OF SALES CONSIDERATION U/S 48?- https://www.youtube.com/watch?v=WuRt9...

4) WHETHER NOTICE SENT TO SECONDARY EMAIL IS VALID IF NOT SENT TO PRIMARY E-MAIL U/S 148?- https://www.youtube.com/watch?v=aAzHE...

5) WHETHER ENTRIES IN BOOKS OF ACCOUNTS CONCLUSIVE TO DETERMINE TAXABLE INCOME OF ASSESSEE?- https://www.youtube.com/watch?v=Rx8JQ...