Section 47 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015
- (1)No order imposing a penalty under this Chapter shall be passed after the expiry of a period of one year from the end of the financial year in which the notice for imposition of penalty is issued under section 46.
- (2)An order imposing, or dropping the proceedings for imposition of, penalty under this Chapter may be revised, or revived, as the case may be, on the basis of assessment of the undisclosed foreign income and asset as revised after giving effect to the order of the Commissioner (Appeals), the Appellate Tribunal, the High Court or the Supreme Court or order of revision under section 23 or section 24.
- (3)An order revising or reviving the penalty under sub-section (2) shall not be passed after the expiry of a period of six months from the end of the month in which order of the Commissioner (Appeals), the Appellate Tribunal, the High Court or the Supreme Court is received by the Principal Chief Commissioner or the Chief Commissioner or the Principal Commissioner or the Commissioner or the order of revision under section 23 or section 24 is passed.
- (4)In computing the period of limitation for the purposes of this section, the following time or period shall not be included—
- (a)the time taken in giving an opportunity to the assessee to be reheard under section 7; and
- (b)any period during which a proceeding under this Chapter for the levy of penalty is stayed by an order, or injunction, of any court.
Summary
- The tax office has a one year deadline to pass a penalty order after the year in which they sent the first penalty notice.
- If a court or a higher tax authority changes the original tax amount, the penalty can be revised or restarted to match.
- This revised penalty order must be passed within six months from the end of the month when the higher authority's order was received.
- Time spent giving a person a chance to be reheard because of a change in tax officials is not counted toward the deadline.
- Any period where a court has stayed or blocked the penalty proceedings is also excluded from the time limit.
Practical examples
FAQ
1. What is the general time limit for imposing a penalty under Section 47 of the Black Money Act, 2015?
Section 47 of the Black Money Act, 2015, says the order must be passed within one year from the end of the financial year in which the penalty notice was issued.
2. Can a penalty be revived if the tax assessment is changed by a court under Section 47 of the Black Money Act, 2015?
Yes, Section 47 of the Black Money Act, 2015, allows a penalty to be revised or revived based on the final assessment after an appeal.
3. How much time does the tax office have to revise a penalty under Section 47 of the Black Money Act, 2015?
According to Section 47 of the Black Money Act, 2015, the revised order must be passed within six months from the end of the month the higher order was received.
Test yourself
Q1.Under Section 47 of the Black Money Act, 2015, which of the following is excluded when calculating the time limit for a penalty?
Q2.Under Section 47 of the Black Money Act, 2015, what is the deadline for revising a penalty after a Supreme Court order is received?
Q3.Under Section 47 of the Black Money Act, 2015, the primary one year deadline starts from the end of the financial year in which what happened?
Q4.If a court stays a penalty proceeding, how does this affect the deadline under Section 47 of the Black Money Act, 2015?