Penalty proceedings under section 271D for accepting cash loans...

Penalty proceedings under section 271D for accepting cash loans contrary to section 269SS require a regular assessment or reassessment and the Assessing Officer's recorded satisfaction of the alleged contravention. Where neither scrutiny assessment nor reassessment had commenced and no satisfaction was recorded, the Tribunal quashed the proceedings. The approach follows High Court precedent that, without a regular assessment, recourse to comparable penalty proceedings under section 271E is unjustified. Both appeals were allowed.