2021 (3) TMI 427

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.... declaring income of Rs. 2,30,000/- plus agricultural income of Rs. 1,10,000/- was filed on 31.03.2012. The assessee is a Civil Contractor. The AO made addition of Rs. 42,587/- on account of low household withdrawn. The AO also made addition of Rs. 1,10,000/- on account of undisclosed agricultural income. The assessment was completed u/s 143(3) dated 21.03.2014. The AO imposed penalty u/s 271D of the I.T. Act vide order dated 28.04.2015/01.05.2015. The AO in this order has mentioned that assessee has received cash amount of Rs. 1,74,320/- and Rs. 35,90,165/- from Ms. Sujata and Shri Dushyant other than account payee cheque/draft in contravention of provisions of section 269SS of the Act. The assessee in response to show-cause notice filed a....

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..... 6. On the other hand, Ld. DR relied upon the orders of the authorities below. 7. We have considered the rival submissions. Section 273B of the I.T. Act provides that no penalty shall be imposable on the persons or the assessee as the case may be for any failure referred to in section 271D of the I.T. Act, if he proves that there was a reasonable cause for the said failure. The assessee explained before the authorities below that two of the neighbours of the assessee purchased the properties and they were to make payment to HUDA. Since there was having no bank account, therefore, on their request assessee received the amount and deposited in his bank account. The drafts were prepared favouring the HUDA and ultimately the same have be....

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....e appeal of the assessee against the original assessment order was heard and allowed thereby setting aside the assessment order itself. After remand, the AO passed a fresh assessment order but in this assessment order, no satisfaction regarding initiation of penalty proceedings u/s 271D of the Act was recorded. The Tribunal as well as the High Court held that the penalty order passed on the basis of the original assessment order could not still survive when that assessment order had been set aside because the satisfaction recorded therein for the purpose of initiation of the penalty proceedings would also not survive. On further appeals: Held, dismissing the appeals, that in the fresh assessment order there was no satisfac....