Penalty — Limitation u/s. 275(1)(c) — Penalty u/s. 271E — Acceptance and repayment of deposits in cash in excess of prescribed limit — Assessment order passed on 31/12/2010 with initiation of penalty proceedings — Reference to Additional Commissioner made on 07/06/2011 and penalty order passed on 30/12/2011 — Held by High Court that penalty order barred by limitation — Six months’ limitation period u/s. 275(1)(c) has to be reckoned from date of initiation of penalty proceedings.

13. Principal CIT v. Thapar Homes (P) Ltd.: (2026) 486 ITR 149 (Del): 2025 SCC OnLine Del 11073 (2025) 347 CTR 184 (Del)

A. Y. 2009-10: Date of order 01/08/2025

Ss. 269T, 271E and 275(1)(c) of ITA 1961

Penalty — Limitation u/s. 275(1)(c) — Penalty u/s. 271E — Acceptance and repayment of deposits in cash in excess of prescribed limit — Assessment order passed on 31/12/2010 with initiation of penalty proceedings — Reference to Additional Commissioner made on 07/06/2011 and penalty order passed on 30/12/2011 — Held by High Court that penalty order barred by limitation — Six months’ limitation period u/s. 275(1)(c) has to be reckoned from date of initiation of penalty proceedings.

For the A. Y. 2009-10, the Assessing Officer passed the assessment order on 31/12/2010 u/s. 143(3) of the Income-tax Act, 1961, with initiation of penalty proceedings u/s. 271E for contravention of section 269T. The reference was made by the Assessing Officer to the concerned Additional Commissioner of Income-tax (ACIT) on 07/06/2011 and pursuant to the notice issued by the Additional Commissioner of Income-tax, the penalty order dated 30/12/2011 u/s. 271E of the Act was passed. The penalty imposed was for ₹3,44,15,000, which is equivalent