2019 (1) TMI 285

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....al, arbitrary and unjustified. 2. That without prejudice to the above, the Ld. Commissioner of Income Tax Appeals) has erred in upholding the imposition of penalty of Rs. 12,05,000/- under section 271D of the Act which is arbitrary and unjustified. 3. That the Ld. Commissioner of Income Tax (Appeals) has erred in law as well as on facts in upholding the imposition of penalty under section 271D of the Act even in respect of one Sh. Rakesh Thakur for which no show cause notice was issued and as such levy of penalty on this amount is against the Principals of Natural Justice which renders it arbitrary and unjustified. 4. That in any case, the Ld. Commissioner of Income Tax (Appeals) has failed to appreciate the reasonable cause pleaded....

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....see and levied the impugned penalty. 5. Being aggrieved the assessee carried the matter to the Ld. CIT(A) and submitted that the penalty cannot be levied because the Assessing officer has not initiated penalty proceedings while completing assessment proceedings u/s 143(3) of the Act. The Ld. CIT(A), however, did not find merit in the said submissions and sustained the penalty levied by the Assessing officer. 6. Now the assessee has come in appeal. The Ld. Counsel for the assessee submitted that Assessing officer had not recorded any satisfaction in the assessment order regarding initiation of the penalty proceedings u/s 271D of the Act, therefore, the penalty levied by the Assessing officer and sustained by the Ld. CIT(A) u/s 271D of the ....