INCOME TAX ACT, 1961

Section 271D

Penalty under section 271D - Allegation that sum received by assessee contrary to section 269SS - -

AO alleged that a sum had been received by assessee contrary to section 269SS. A proposal was issued to DCIT for proceeding after imposition of penalty under 271D. After consideration of the materials and the documents, DCIT accepted the sum and confirmed the penalty which was levied. A show cause notice was issued for enhancement of amount and after considering the submissions of assessee, penalty proposed under section 271D was levied. Held: Tribunal completely ignored its previous order which had the effect of restoring back to AO the matter for the relevant assessment years for fresh assessment. The judgment of the Supreme Court in CIT v. Jai Laxmi Rice Mills Ambala City (2015) 379 ITR 521 (SC) : 2015 TaxPub(DT) 5251 (SC) is authority for the proposition that after remand, the matter is at large and that AO had to apply his mind afresh to materials and circumstances based on which the appropriate provision could be sought recourse to. Order was accordingly set-aside and it was open to AO to consider all the materials afresh and pass appropriate orders, having regard to the current position, in accordance with law on the merits as to the valuation.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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