https://www.taxtmi.com/caselaws?id=785131 Penalties under sections 271D and 271E were challenged on the basis that the additions forming the basis for penalty were deleted; where the assessment additions are deleted, the foundational satisfaction recorded by the Assessing Officer in the assessment order ceases to exist, rendering penalty proceedings unsustainable. The requirement that satisfaction regarding alleged breach of restrictions on cash transactions be recorded in the assessment order is essential for valid initiation of penalty proceedings; annulment or setting aside of that assessment removes the statutory foundation and led to deletion of the impugned penalties and dismissal of the Revenue appeals. en-us Thu, 15 Jan 2026 00:00:00 +0530 Sat, 17 Jan 2026 08:45:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785131 Penalties under sections 271D and 271E were challenged on the basis that the additions forming the basis for penalty were deleted; where the assessment additions are deleted, the foundational satisfaction recorded by the Assessing Officer in the assessment order ceases to exist, rendering penalty proceedings unsustainable. The requirement that satisfaction regarding alleged breach of restrictions on cash transactions be recorded in the assessment order is essential for valid initiation of penalty proceedings; annulment or setting aside of that assessment removes the statutory foundation and led to deletion of the impugned penalties and dismissal of the Revenue appeals. Case-Laws Income Tax Thu, 15 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785131