https://www.taxtmi.com/caselaws?id=449956 The ITAT Chennai dismissed penalty proceedings under sections 271D/271E for alleged violations of sections 269SS and 269T. The tribunal held that presumption under section 132(4A) regarding seized materials cannot be applied against third parties, only against persons in whose possession documents are found. The assessee successfully rebutted allegations of cash transactions through confirmatory letters, with no corroborative inquiry by the AO. Additionally, the penalty proposal was moved eight months after assessment completion, violating CBDT circular requirements. The AO also failed to record mandatory satisfaction regarding section 269SS violations in the assessment order, as required by Supreme Court precedent in Jai Laxmi Rice Mills case. en-us Tue, 20 Feb 2024 00:00:00 +0530 Fri, 23 Feb 2024 07:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449956 The ITAT Chennai dismissed penalty proceedings under sections 271D/271E for alleged violations of sections 269SS and 269T. The tribunal held that presumption under section 132(4A) regarding seized materials cannot be applied against third parties, only against persons in whose possession documents are found. The assessee successfully rebutted allegations of cash transactions through confirmatory letters, with no corroborative inquiry by the AO. Additionally, the penalty proposal was moved eight months after assessment completion, violating CBDT circular requirements. The AO also failed to record mandatory satisfaction regarding section 269SS violations in the assessment order, as required by Supreme Court precedent in Jai Laxmi Rice Mills case. Case-Laws Income Tax Tue, 20 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449956