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HC: 9 years delay ‘woeful’ & ‘inexcusable’; Held Sec.271C penalty show cause notice time barred
13 Mar 2023
- DMD
- Matter Reporting
HC: 9 years delay ‘woeful’ & ‘inexcusable’; Held Sec.271C penalty show cause notice time barred
In a significant judgment, Delhi High Court held that a show cause notice issued by the Revenue under Section 271C, for imposing penalty, was ‘woefully’ delayed, thus, quashed the show cause notice. The Court further stated that the Revenue’s delay in issuing show cause notice i.e., almost 9 years from end of relevant AY, was inexcusable and remarked that, “even if we were to take an indulgent view of the matter, and give leeway to the respondent/revenue, that the period for commencement of limitation prescribed in terms of the second limb of clause (c) of sub-section (1) of Section 275 of the Act would commence either from 2013 or 2014, there is a period of unexplained substantial delay, as the SCN, concededly, was issued only on 09.11.2017.” The ruling was delivered by the Division Bench of the Delhi High Court.
Our Partner Sachit Jolly, along with Rohit Garg (Associate Partner), Soumya Singh (Senior Associate), Disha Jham (Senior Associate) and Sohum Dua (Associate) appeared for the Assessee.
