https://www.taxtmi.com/caselaws?id=764585 ITAT Chennai held that penalty under Section 271D was invalid due to procedural defect. The assessee company had unaccounted scrap sales recorded as credit in director's advance account. The AO failed to record satisfaction in the assessment order regarding violation of Section 269SS provisions, which is mandatory for valid initiation of penalty proceedings under Section 271D. Following established precedent, the tribunal ruled that without such recorded satisfaction, penalty proceedings cannot be validly initiated, making the penalty order legally invalid. Appeal decided against revenue. en-us Fri, 10 Jan 2025 00:00:00 +0530 Tue, 14 Jan 2025 08:00:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764585 ITAT Chennai held that penalty under Section 271D was invalid due to procedural defect. The assessee company had unaccounted scrap sales recorded as credit in director's advance account. The AO failed to record satisfaction in the assessment order regarding violation of Section 269SS provisions, which is mandatory for valid initiation of penalty proceedings under Section 271D. Following established precedent, the tribunal ruled that without such recorded satisfaction, penalty proceedings cannot be validly initiated, making the penalty order legally invalid. Appeal decided against revenue. Case-Laws Income Tax Fri, 10 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764585