TMI Blog2016 (8) TMI 1558X X X X Extracts X X X X X X X X Extracts X X X X ..... both AO in the penalty orders and learned CIT(A) in the impugned orders, no satisfaction for initiation of penalty proceedings under sections 271D and 271E of the Act has been recorded in the orders of assessment. In this factual matrix of the case and respectfully following the decision in the case of Jai Laxmi Rice Mills (supra), we hold that since admittedly no satisfaction has been recorded for initiating penalty proceedings under sections 271D and 271E of the Act in the case on hand in the order of assessment for A.Y. 2000-01, therefore no penalty thereunder could be levied. In this view of the matter we cancel the penalty levied under sections 271D and 271E of the Act for A.Y. 2000-01 - Decided in favour of assessee. - ITA Nos. 5668 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the AO as not satisfactory. According to the AO, there was no requirement for initiating of penalty proceedings in the order of assessment, which is since barred by limitation. The AO was of the view that the penalty proceedings initiated by him were not barred by limitation and in this regard placed reliance on the decision of the Special Bench of ITAT, Chandigarh in DCIT vs. Dewan Chand Amrit Lal and Others (283 ITR 203). The AO was of the view that the assessee was not able to justify that there was a reasonable/urgent exigency of business to receive and pay back the loan of ₹ 1,45,000/- in cash. In this view of the matter, the AO proceeded to levy penalty of ₹ 1,45,000/- under sections 271D 271E of the Act, by way of two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pt and repayment of cash loan of ₹ 1,45,000/- from Mr. Abhijit A.Sheth is undisputed whereas the fact is that your appellant is praying even at the stage of penalty proceedings before the Ld. Assessing officer that: i) your appellant has not received any cash loans, ii) when no loans is received, there is no question of repayment thereof, iii) during the course of assessment proceedings u/s. 143(3) r.w.s. 263, loan confirmations were filed and accepted, iv) there is no mention about any violation of section 269SS of the Income Tax Act, 1961 either in the original order u/s. 143(3) or order u/s. 143(3) r.w.s. 263 of the Income tax Act. 1961. 4 Your Appellant craves leave to add, alter, amend and/or withdraw any of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .Sheth is undisputed whereas the fact is that your appellant is praying even at the stage of penalty proceedings before the Ld. Assessing officer that: i) your appellant has not received any cash loans, ii) during the course of assessment proceedings u/s. 143(3) r.w.s. 263, loan confirmations were filed and accepted, iv) there is no mention about any violation of section 269SS of the Income Tax Act, 1961 either in the original order u/s. 143(3) or order u/s. 143(3) r.w.s. 263 of the Income tax Act. 1961. 4 Your Appellant craves leave to add, alter, amend and/or withdraw any of the above grounds of appeal. 3.3.2 The assessee has also raised additional ground of appeal which is as under: - (1) The Ld. CIT(A) has erred in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen no penalty thereunder could be levied. We have, respectfully perused a copy of the aforesaid judgement of the Hon'ble Apex Court (supra) and find that admittedly, by both AO in the penalty orders and learned CIT(A) in the impugned orders, no satisfaction for initiation of penalty proceedings under sections 271D and 271E of the Act has been recorded in the orders of assessment. In this factual matrix of the case and respectfully following the decision of the Hon'ble Apex Court in the case of Jai Laxmi Rice Mills (supra), we hold that since admittedly no satisfaction has been recorded for initiating penalty proceedings under sections 271D and 271E of the Act in the case on hand in the order of assessment for A.Y. 2000-01, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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