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2024 (1) TMI 25 - AT - Income TaxPenalty u/s 271D - cash Received in contravention to the provision of section 269SS - mandation of recording satisfaction - whether without satisfaction being recorded in the assessment order, penalty can be levied under section 271D of the Act? - HELD THAT:- In the case of Umakant Sharma Vs JCIT [2023 (8) TMI 1094 - ITAT INDORE] observed that, it is pre-requisite condition that the initiation of penalty under section 271D/271E of the Act, there must be assessment proceedings or proceeding arising from assessment order are pending in the case of the assessee, and, therefore, following case of Vijayaben G. Zalavadia [2022 (5) TMI 1572 - ITAT AHMEDABAD] deleted the penalty levied under section 271D by holding that without any assessment proceedings in the case of the assessee such penalty is not valid and liable to be quashed. Also this question as dealt in the case of Srinivasa Reddy Reddeppagari [2022 (12) TMI 1446 - TELANGANA HIGH COURT] wherein while referring to the decision of the Hon’ble Apex Court in the case of Jai Laxmi Rice Mills [2015 (11) TMI 1453 - SUPREME COURT] the Hon’ble High Court held that the provisions under section 271E and 271D of the Act are in pari materia and since in terms of the decision in Jai Laxmi Rice Mills (supra), satisfaction must be recorded in the original assessment order for the purpose of initiation of penalty proceedings under section 271E of the Act, the same is equally applicable for initiation of penalty proceedings under section 271D of the Act. Assessee appeal allowed.
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