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2023 (12) TMI 403 - AT - Income TaxPenalty u/s 271D - assessee has accepted cash as part of sale consideration on sale of immovable property - contravention of the provisions of section 269SS - HELD THAT:- We find that the AO has enquired about the cash deposits made by the assessee and he convinced and accepted the explanation given by the assessee. Further, it is pertinent to mention that the Ld.AO has not recorded the satisfaction regarding the initiation of penalty proceedings while passing the assessment order u/s. 143(3) of the Act which is a prerequisite for initiation of penalty u/s. 271D of the Act. We are of the considered opinion that issuing a notice u/s. 274 r.w.s 271D of the Act is nothing but an afterthought of the Ld. AO. As case of CIT Vs Jai Laxmi Rice Mills [2015 (11) TMI 1453 - SUPREME COURT] we are of the considered view that the penalty order passed u/s. 271D deserves to be quashed. Appeal of the assessee is allowed.
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