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2019 (6) TMI 603 - AT - Income TaxPenalty u/s 271D - violation of provisions of section 269SS - sum received by the assessee as loan by way of cash and not by way of account payee cheques - non-recording of satisfaction regarding penalty proceedings u/s 271D - HELD THAT:- As perused the materials available on record and gone through the orders of authorities below. In this case, the assessment was completed u/s 143(3) by assessing total income after making various additions. Moreover, while framing the assessment order, AO has not given any findings/observations that the assessee has contravened the provisions of section 269SS. Against the additions/disallowances, it is an admitted fact that the Assessing Officer proposed for initiating penalty proceedings u/s 271(1)(c). Thus, it is a clear cut case that on perusal of the assessment order, the AO has not recorded any satisfaction recorded regarding penalty proceedings u/s 271D. In the present case in hand, the AO has not at all recorded his satisfaction that the assessee has contravened the provisions of section 269SS warranting levy of penalty u/s 271D whereas, against various additions including disallowance under section 40(a)(ia), the Assessing Officer proposed for initiating penalty proceedings u/s 271(1)(c), which is an identical provisions, where the income escaped assessment or furnishing of inaccurate particulars of income, attracts penalty. We are of the considered opinion that the preposition laid down by the Hon’ble Supreme Court in the case of CIT v. Jai Laxmi Rice Mills [2015 (11) TMI 1453 - SUPREME COURT] squarely applies to the case of the assessee. Respectfully following the above decision of the Hon’ble Supreme Court, the penalty levied u/s 271D stands deleted - decided in favour of assessee.
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