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2019 (11) TMI 142 - AT - Income TaxLevy of penalty u/s. 271D - assessee had accepted the amount and offered it for tax as income by revising its return of income originally filed - HELD THAT:- In Standard Brands Ltd. [2006 (7) TMI 126 - DELHI HIGH COURT] HC has held that the Revenue could not, on the one hand, contend that the amount was undisclosed income in the hands of the assessee and, at the same time, seek to initiate the proceedings against the assessee for alleged violation of the provisions of section 269SS of the Act; and that the Revenue having taken the stand that the income was undisclosed income in the hands of the assessee, it could not resort to the proceedings u/s. 269SS r.w.s 271D of the Act. In Diwan Enterprises [1998 (11) TMI 27 - DELHI HIGH COURT] where the assessee had surrendered the amount of alleged loan as its income, and the A.O. had accepted the surrendered amount and had treated it as the income of the assessee, the Hon’ble Delhi High Court has held that the A.O. cannot treat the amount as a loan for the purpose of section 269SS r.w.s. 271D of the Act and levy penalty; and that the amount having ceased to be a loan, the very foundation for initiating the proceedings, for and levying the penalty u/s. 271D was lost. Also see R. P. Singh Co. (P.) Ltd. [2010 (9) TMI 863 - DELHI HIGH COURT] as held that once the A.O. has treated the share application money received by the assessee in cash, as undisclosed income of the assessee, he could not have proceeded on the basis that it was deposit; and that there was no question of levy of penalty u/s. 271D - Decided in favour of assessee.
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