9911796707
TMI Blog2025 (1) TMI 612X X X X Extracts X X X X X X X X Extracts X X X X ..... einafter in short 'the Act') passed by the Addl.CIT (International Taxation), Range-1, Chennai, on 26.03.2022. 2. The brief facts of the case are that assessee an individual had sold a plot at Vallalarr Street, Jyothi Nagar, Arakkonam, Ranipet District, for a sale consideration of Rs. 27 lakhs which fact is evident from the copy of the Sale Deed dated 11.07.2016 [AY 2017-18]. And since there was cash deposit of Rs. 23 lakhs during demonetization period in the assessee's bank account, the AO called for details of nature and source of the cash deposits; and pursuant to which the assessee submitted that the deposit of Rs. 23 lakhs cash/SBN [which he deposited during demonetization period], was out of the total sale consideration of Rs. 27 lak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dl.CIT was of the opinion that assessee couldn't make out a case that there was a reasonable cause for non-levy of penalty and he imposed a penalty of Rs. 27 lakhs u/s.271D of the Act. 3. Aggrieved, the assessee preferred an appeal before the Ld.CIT(A) who was pleased to dismiss the same. 4. Aggrieved, the assessee is in appeal before this Tribunal. 5. We have heard both the parties and perused the material available on record. The facts sated hereinabove are not disputed i.e. the genuineness of the cash deposit of Rs. 23 lakhs during demonetization period has been accepted by the AO being part of the sale consideration received for sale of agricultural land of the assessee. Therefore, he accepted the return of income filed by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Hon'ble Supreme Court in the case of CIT v. Jai Laxmi Rice Mills, wherein, the Hon'ble Apex Court while examining similar contention/legal issue of levy of penalty u/s.271E which is pari materia to sec.271D of the Act held as under: No penalty u/s 271E could be levied in the absence of recording of satisfaction by the AO in the assessment order. The relevant portion of the decision of the Hon'ble Supreme Court is reproduced as* under: 5. As pointed out above, insofar as, fresh assessment order is concerned, there was no satisfaction recorded regarding penalty proceeding under Section 27 JE of the Act, though in that order the Assessing Officer wanted penalty proceeding to be initiated under Section 271 (l)(c) of the Act. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eding? In the facts of that case, it was found that the penalty order was issued following the assessment order. However in appeal, Commissioner of Income Tax (Appeals) had set aside the original assessment order with a direction to frame assessment de nova. In the fresh assessment order, no satisfaction was recorded by the assessing officer regarding initiation of penalty proceedings under Section 271 E of the Act. It was noticed that the penalty order was passed before the appeal of the assessee was allowed by the Commissioner of Income Tax (Appeals). It was in that context that Supreme Court held as follows: The Tribunal as well as the High Court has held that it could not be so for the simple reason that when the original assessment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.I relying upon the Kerala High Court decision in Grihalaxmi Vision (2 supra) noted that competent authority to levy penalty is the Joint Commissioner. He has also referred to an earlier decision of the Supreme Court in CIT V. Mac Data Ltd. wherein it was observed that assessing officer has to satisfy himself as to whether penalty proceedings should be initiated or not. Assessing officer is not required to record his satisfaction in a particular manner or reduce it into writing. Therefore, respondent No. 1 imposed the penalty under Section 271D of the Act. 25. We are afraid respondent No. I had completely overlooked the decision of the Supreme Court in Jai Laxmi Rice Mills Ambala City (1 supra). In the said decision as extracted above, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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