https://www.taxtmi.com/caselaws?id=446654 ITAT Delhi held that penalty under section 271E for loan repayment by bearer cheque instead of crossed cheque was improperly initiated. The penalty proceedings for A.Y. 2014-15 were commenced while completing assessment for A.Y. 2015-16, which is legally untenable. Penalty proceedings must be initiated while the AO is conducting assessment proceedings for the relevant year in which default occurred, not afterwards. Since no proceedings were pending for A.Y. 2014-15, the penalty initiation was bad in law and unsustainable. Appeal allowed. en-us Mon, 04 Dec 2023 00:00:00 +0530 Fri, 08 Dec 2023 14:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446654 ITAT Delhi held that penalty under section 271E for loan repayment by bearer cheque instead of crossed cheque was improperly initiated. The penalty proceedings for A.Y. 2014-15 were commenced while completing assessment for A.Y. 2015-16, which is legally untenable. Penalty proceedings must be initiated while the AO is conducting assessment proceedings for the relevant year in which default occurred, not afterwards. Since no proceedings were pending for A.Y. 2014-15, the penalty initiation was bad in law and unsustainable. Appeal allowed. Case-Laws Income Tax Mon, 04 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446654