https://www.taxtmi.com/highlights?id=78329 The ITAT held that for penalty u/s 271D for contravention of section 269SS, recording satisfaction by AO is mandatory. Citing Jaya Laxmi Rice Mills case, it emphasized the need for satisfaction to initiate penalty proceedings u/s 271D, similar to u/s 271E. The Supreme Court decision in Jai Laxmi Rice Mills reinforced this requirement. The penalty order by the Income Tax Commissioner was quashed as AO failed to record satisfaction. Consequently, CIT(A)-NFAC's order was set aside, and the penalty u/s 271D was deleted, allowing the assessee's appeal. en-us Mon, 10 Jun 2024 07:43:40 +0530 Mon, 10 Jun 2024 07:43:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=78329 The ITAT held that for penalty u/s 271D for contravention of section 269SS, recording satisfaction by AO is mandatory. Citing Jaya Laxmi Rice Mills case, it emphasized the need for satisfaction to initiate penalty proceedings u/s 271D, similar to u/s 271E. The Supreme Court decision in Jai Laxmi Rice Mills reinforced this requirement. The penalty order by the Income Tax Commissioner was quashed as AO failed to record satisfaction. Consequently, CIT(A)-NFAC's order was set aside, and the penalty u/s 271D was deleted, allowing the assessee's appeal. Highlights Income Tax Mon, 10 Jun 2024 07:43:40 +0530 https://www.taxtmi.com/highlights?id=78329