SECTION 271D, READ WITH
SECTION 271E, OF THE INCOME-TAX ACT, 1961 - FAILURE TO COMPLY WITH PROVISIONS
OF SECTION 269SS - PENALTY FOR - COMMENCEMENT OF LIMITATION FOR PENALTY
PROCEEDINGS UNDER SECTIONS 271D AND 271E
CIRCULAR NO.9/DV/2016 [F.NO.279/MISC./M-116/2012-ITJ], DATED 26-4-2016
It has
been brought to the notice of the Central Board of Direct Taxes (hereinafter
referred to as the Board) that there are conflicting interpretations of various
High Courts on the issue whether the limitation for imposition of penalty under
sections 271D and 271E of the Income tax Act, 1961 (hereafter referred to as
the Act) commences at the level of the Assessing Officer (below the rank of
Joint Commissioner of Income Tax.) or at level of the Range authority i.e. the
Joint Commissioner of Income Tax./Addl. Commissioner of Income Tax.
Some
High Courts have held that the limitation commences at the level of the
authority competent to impose the penalty i.e. Range Head while others have
held that even though the Assessing Officer is not competent to impose the
penalty, the limitation commences at the level of the Assessing Officer where
the Assessing Officer has issued show cause notice or referred to the
initiation of proceedings in assessment order.
2. On careful examination of
the matter, the Board is of the view that for the sake of clarity and
uniformity, the conflict needs to be resolved by way of a "DepartmentalView".
