Dismissing the petition the petition the Court held that , Limitation period of six months to be reckoned from the end of month initiation of the penalty proceedings by JCIT and not from the date of assessment order. Penalty u/s2771D is independent of assessment . In the assessment order dt. 28 th Dec 2016 , the AO has only issued show cause to the assessee regarding penalty .In the second notice dt.22-09 -2017 by JCIT initiated penalty proceedings u/s 271D and 271E of the Act, therefore the initiation of penalty proceedings is not barred by limitation. JCIT is only authority competent to initiate proceedings and impose penalty.Initiation of penalty proccednngs is not barred by limitation. (AY.2009-10, 2010-11)
Nitin Agrawal v. JCIT ( 2018) 302 CTR 484 / 166 DTR 27/ ( 2019) 212 ITR 309 ( MP) (HC)
S. 275 : Penalty – Bar of limitation – Takes or accepts any loan or deposit – Repayment of loan or deposit – Limitation period of six months to be reckoned from the end of month initiation of the penalty proceedings by JCIT and not from the date of assessment order – Penalty u/s2771D is independent under assessment .-JCIT is only authority competent to initiate proceedings and impose penalty – Not barred by limitation .[ S. 269SS, 269T,271D, 271E ]