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| The Tax Publishers2019 TaxPub(DT) 8089 (Del-Trib) INCOME TAX ACT, 1961
Section 158BFA
Penalty order passed beyond period of limitation prescribed in terms of clause (c) of sub-section (3) of section 158BFA was illegal and bad in law. Further, levy of penalty is not automatic because assessee did not have any intention to conceal capital gains as investments were shown in its financial statements and assessee had filed return of income with some delay.
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Search and seizure - Block assessment - Assessee declared undisclosed income during search and seizure -
Pursuant to search and seizure, a notice under section 158BC was issued in respect of return for the block period was filed by assessee declaring the undisclosed income. AO imposed penalty under section 158BFA(2) alleging that assessee did not pay tax on its admitted income in return so furnished and did not fulfill the conditions laid down under section 158BFA. Assessee assailed the same contending that order imposing penalty was barred by limitation. Held: Penalty order under section 158BFA should have been passed within six months from end of month in which order of Tribunal was received by concerned authority. However, in instant case, penalty order was beyond limitation period as prescribed in section 158BFA(3)(c). Further, penalty levied by AO under section 158BFA(2) could not be sustained because assessee did not have any intention to conceal capital gains as it had disclosed such investment in its financial statements and also had filed return of income, of course with some delay. Levy of penalty is not automatic. Thus, viewed from any angle, imposition of penalty was unjustified.
REFERRED : CIT v. AT Invofin India (P.) Ltd. & Ors. (2011) 335 ITR 370 (Delhi) Cellphone Credit and Securities India (P.) Ltd. v. ACIT IT (SS) No. 7 of 2006 : 2019 TaxPub(DT) 4026 (Del-Trib) Dy. CIT v. Intell Invofin India (P.) Ltd. [IT(SS)A No.4/Del/2013 (Assessment Year: 01/04/1989 to 13/01/2000), dt. 1-7-2016] Arvind Kumar Jain v. ACIT (2013) 145 ITD 0271 (Agra) : 2014 TaxPub(DT) 2150 (Agra-Trib)
FAVOUR : In assessee's favour
A.Y. : 1-4-1989 to 13-1-2000
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