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2019 (8) TMI 1413 - AT - Income TaxPenalty u/s 271D - default of provisions of section 269SS - settlement Commission accepted the offer made by M/s Spaze Towers Pvt Ltd pursuant to search u/s 132 of additional income of ₹ 52.74 crores on account of bogus purchases and allowed the benefit of telescoping of personal expenses of promoters/directors aggregating to ₹ 16.43 crores - while deciding the appeal of above company CIT(A) suggested the AO to imposed penalty - recording of satisfaction - HELD THAT:- There is no dispute about the sources of money wherefrom the expenditure had been incurred which has already suffered taxation in the hands of the company Spaze Towers and the very same money cannot be considered as representing undisclosed income of the appellants for which false explanation is being given as loan to attract the provisions of section 269SS r.w.s 271D. On a perusal of the assessment order in the quantum proceedings, the order of the first appellate authority deciding the quantum additions and also the order of the JCIT levying penalty u/s 271D, we find that the assessment order as well as the order of the JCIT are devoid of any satisfaction regarding initiation of penalty proceedings u/s 271D The Hon'ble Supreme Court in the case of Jai Laxmi Rice Mills Ambala City [2015 (11) TMI 1453 - SUPREME COURT] has held that penalty u/s 271D is without any satisfaction and, therefore, no such penalty can be levied We, accordingly, direct the Assessing Officer to delete the penalty levied in respect of the captioned appellants for all the assessment years under consideration.
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