| Question And Answer | |
|---|---|
| Subject: | Time limit for initiating and levy of Penalty proceedings u/Sec. 271DA of the Act |
| Category: | Income-Tax |
| Querist: | Prakash |
| Answered by: | KSA Legal Chambers |
| Tags: | cash exceeding 2 lakhs, Mode of undertaking transactions, penalty |
| Date: | July 14, 2023 |
1.What is time limit for initiating and levy of Penalty U/Sec 271DA of the Income Tax Act.1961.
2. Whether it is to be initiated in the assessment proceedings.
The Assessing officer must initiate the assessment process under Section 271DA of the Income -Tax Act of 1961. Once the penalty process has been initiated in the assessment order, the time limit shall be computed in accordance with the provisions of section 275(1)(c) of the aforementioned Act. The order must be passed within six months from the date of initiation or the end of the financial year in which the initiation began, whichever is later. Refer , Triumph Securities Ltd. v. Add. CIT (2022)99 ITR 58 (SN)(Mum) ( Trib) , PCIT v. JKD Capital and Finlease Ltd ( 2015) 378 ITR 614 ( Delhi)( HC)