https://www.taxtmi.com/caselaws?id=461121 ITAT Delhi ruled in favor of the assessee regarding penalties under sections 271D and 271E for alleged violations of sections 269SS and 269T. The tribunal found that the AO failed to independently examine penalty issues, merely relying on assessment order observations without establishing facts categorically. The penalty proceedings were deemed quasi-criminal requiring strict adherence to due process. Crucially, the CBDT Circular dated 26.04.2016 mandating penalty references during assessment proceedings was not followed, as initiation occurred after assessment completion. This procedural violation vitiated the assumption of jurisdiction, resulting in penalty cancellation. en-us Fri, 26 Jul 2024 00:00:00 +0530 Thu, 13 Mar 2025 20:27:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461121 ITAT Delhi ruled in favor of the assessee regarding penalties under sections 271D and 271E for alleged violations of sections 269SS and 269T. The tribunal found that the AO failed to independently examine penalty issues, merely relying on assessment order observations without establishing facts categorically. The penalty proceedings were deemed quasi-criminal requiring strict adherence to due process. Crucially, the CBDT Circular dated 26.04.2016 mandating penalty references during assessment proceedings was not followed, as initiation occurred after assessment completion. This procedural violation vitiated the assumption of jurisdiction, resulting in penalty cancellation. Case-Laws Income Tax Fri, 26 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461121