|The Tax Publishers2021 TaxPub(DT) 0786 (Pune-Trib)
INCOME TAX ACT, 1961
Assessee could not be penalized for the inaction of the Department in verifying the facts of the case wherein both AO and CIT(A) had made the addition based on mere surmises and guess work and therefore, penalty under section 271D cannot be sustained.
Penalty under section 271D - Contravention of section 269SS - Addition made on the premises of guess work and suspicion -
AO levied penalty on assessee under section 271D on the ground that assessee accepted an amount as advance against sale of land in violation of provision of section 269SS. Held: It was the contention of the assessee that some sale transactions of land were to be made, for which, the advance amount was paid in cash to the assessee. That, however, when this transaction did not materialize, the assessee refunded the said amount of Rs. 5,00,000 in cheque back. These facts were never enquired or examined or verified by the Department. Further, section 269SS refers to the loan or deposit received in cash and since it was an advance taken, the amount, therefore, would not be within the rigours of section 269SS and hence, there cannot be any penalty leviable under section 271D on the assessee.
FAVOUR : In favour of assessee.
A.Y. : 2012-13
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