2021 (4) TMI 47

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....evant to the Assessment Year 2014-2015. 2. The assessee has raised the following grounds of appeal: 1. Learned PCIT has e red in law as well as on facts in passing order u/s. 263 of the IT Act. 3. The only issue raised by the assessee is that the learned Pr. CIT under section 263 of the Act erred in holding that the assessment order framed by the AO under section 143(3) is erroneous insofar prejudicial to the interest of revenue. 4. The facts in brief are that the assessee in the present case is an individual and engaged in the business of textile trading. The case of the assessee was selected under scrutiny under CASS on account of large specified domestic transactions i.e. payment made to the related parties as specified under....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....learned DR contended that the case of the assessee pertains to the assessment A.Y. 2014-15 and payment made to the specified persons was very much appearing under the specified domestic transactions prescribed under section 92BA of the Act. As such, the provisions during the relevant time was very much applicable to the transaction as discussed by the learned Pr. CIT in his order. Accordingly, the learned DR vehemently supported the order of learned Pr. CIT. 9. The learned AR in his rejoinder submitted that the clause with reference to the expenditure in respect of which payment has been made to the persons referred to section 40A(2)(b) of the Act has been omitted which implies that such provision was not there since its inception. 10....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d for over three decades and reiterated even as late as two years ago. Non-compliance with section 269SS a traced prosecution as well as penalty. Omission of the provision regarding prosecution will not a fact the levy of penalty. The advantage arising out of application of the ratio of the two decisions resulting in prosecution in cases of non-compliance with section 269SS is only transactional a feting a few cases arising prior to 1.4.1989. Such cases may be few and far between. Hence, we find this is not an appropriate case for reference to the larger Bench. 9. Net result of this discussion is that the view taken by the High Court is not consistent with what has been stated by this Court in the two decisions aforesaid and the pr....