INCOME TAX ACT, 1961

Section 271D

Penalty under section 271D - Leviability - Assesse took plea of settlement of addition/disallowance made in the assessment order under Vivad Se Vishwas Scheme, 2020 -

Assesse challenged penalty levied by AO under section 271D contending that assessee had settled under the VSVS Scheme, 2020, the addition/disallowance made in the assessment Order, dated 30-12-2020 and the same stood accepted by the designated authority and, therefore, assessee was not liable to the imposed with penalty under section 271D. Held: Penalty imposed under section 271D is independent of assessment proceedings completed under section 143(3). Even without completion of assessment under section 143(3), penalty under section 271D can be imposed for violation of provisions of section 269SS. Thus, penalty proceedings under section 271D are unconnected with the assessment order passed under section 143(3). Assessee in the instant case had only settled the matter under VSVS, 2020 insofar as the issues that were raised in the appeal filed as against the assessment under section 143(3). Assessee had not settled the penalty imposed under section 271D under VSVS, 2020. Therefore, issue was restored to CIT(A) with direction to adjudicate the grounds raised before him as regards the merits of imposition of penalty under section 271D.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2017-18

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