Assessment order having been passed on 30.12.2022 after obtaining prior approval of the Addl. CIT and satisfaction recorded therein for violation of s. 269SS, the limitation for levy of penalty u\/s 271D expired on 30.06.2023 .Penalty order passed on 30.08.2023 held barred by limitation .CBDT Circular No. 10\/2016 [F.NO.279\/Misc.\/M-140\/2015-ITJ], dated 26-4-2016, applied . Circular binding on the Department . AO\u2019s satisfaction is mandatory precondition for initiation of penalty proceedings even if he is not the competent authority to impose penalty . JCIT\/Addl. CIT cannot extend limitation by issuing notice at his convenience . Period of limitation to be computed from the date of recording of satisfaction by AO . \u00a0Tribunal held that \u00a0the expression \u201caction for imposition of penalty is initiated\u201d refers to recording of satisfaction by the AO and not to issuance of notice by the competent authority . Revenue\u2019s contention rejected . \u00a0Penalty order quashed as time-barred. Relied on \u00a0CIT v. Jai Laxmi Rice Mills Ambala City [2016] 74 taxmann.com 22 \/243 Taxman 174\/ 386 ITR 719 (SC), \u00a0PCIT v. Thapar Homes Ltd [2024] 159 taxmann.com 450 (Delhi) (HC ), CIT v. Narayani & Sons (P) Ltd [2016] 73 taxmann.com 21 ( Cal)( HC) . Jagdish Chandra Suwalka v. JCIT [2023] 154 taxmann.com 504 \/105 ITR 480 ( Jaipur) ( Trib) . Cross objection of assessee was allowed . ( AY .2021-22 ) ( ITA No.1899\/Chny\/2025 & No.65\/Chny\/2025,\u00a0 dt. \u00a030.10.2025)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 275 : Penalty – Bar of limitation – Recording of satisfaction-Cross objection- CBDT Circular binding on department -Period of limitation is to be reckoned from the date of recording of satisfaction by the AO in the assessment order and not from the date of notice issued by the Joint\/Additional CIT. [ S.119, 269SS , 271D, 271E ,271AAA, 275(1)( c) ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-57340","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-eUQ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=57340"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57340\/revisions"}],"predecessor-version":[{"id":57341,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/57340\/revisions\/57341"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=57340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=57340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=57340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}