During a search initiated on 30.09.2015, the assessee admitted, in a sworn statement, receipt of Rs.15 crores in cash as undisclosed income, which was included in the return. The assessment order dated 30.12.2017 made additions and recorded that penalty proceedings under section 271(1)(c) read with section 271AAB would be initiated separately. The assessment was carried in appeal to the Commissioner (Appeals) and thereafter to the Tribunal, whose order attained finality on 22.12.2021. A penalty order under section 271AAB was passed on 30.06.2022 levying penalty at ten per cent of the admitted cash income. The assessee contended that the order was barred by limitation under the residuary clause (c) of section 275(1). Rejecting the contention, the Court held that as the penalty had been initiated in the assessment order which was admittedly the subject of appeal before the Commissioner (Appeals) and the Tribunal, the conditions of clause (a) of section 275(1) were satisfied and that clause, and not clause (c), applied. Since the Tribunal\u2019s order was issued on 22.12.2021, the six-month period ended on 30.06.2022, and the penalty order passed on that date was within limitation. (AY. 2016-17)(SJ)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 271AAB: Penalty-Search cases-Period of limitation-Penalty initiated in the assessment order, which was carried in appeal to the Commissioner (Appeals) and the Tribunal-Limitation governed by section 275(1)(a) and not the residuary clause (c)-Penalty order passed within six months of receipt of the Tribunal\u2019s order is within limitation. [S. 132(4), 275(1)(a), 275(1)(c), Art. 226]<\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-64486","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gM6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64486","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=64486"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64486\/revisions"}],"predecessor-version":[{"id":64487,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/64486\/revisions\/64487"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=64486"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=64486"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=64486"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}