The assessment was completed on December 28, 2017 u/s. 143(3) at a total income of Rs. 4,19,430. However, no appeal was filed against the additional income. The Joint Commissioner issued a show-cause notice on November 6, 2018 u/s. 271D. The Joint Commissioner imposed penalty of Rs. 47,50,000.

Held the, u/s. 271D could not be imposed after the expiry of the period of limitation. During the course of assessment proceedings, the default of accepting cash over the prescribed limit was noted by the Assessing Officer and the assessment proceedings were completed on December 28, 2017. The related financial year ended on March 31, 2018. According to section 275(1)(c), the first time-limit expired on March 31, 2018. For the second time-limit, the period of six months had to be reckoned from the date of the assessment order and six months from the end of that month expired on June 30, 2018. Hence, the penalty was imposed much later on May 28, 2019. Hence, it was clearly barred by limitation. (AY 2015-16)