2024 (6) TMI 101

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.... of by this common order for the sake of convenience and brevity. 3. The sum and substance of the grievance of the assessee is against the levy of penalty u/s 271D of the Income-tax Act, 1961 [hereinafter referred to as 'the Act'] amounting to Rs. 93,80,000/- in A.Y 2016-17 and Rs. 44,00,000/- in A.Y 2017-18 which is without authority of law as no valid satisfaction was recorded in the order passed u/s 147/143(3) of the Act qua the alleged violation u/s 269SS of the Act. 4. Briefly stated, the facts of the case are that a survey u/s 133A of the Act was conducted at the business premises of the partners of the assessee firm on 26.09.2018. During the course of survey, the partners of the assessee firm were required to produce bo....

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....ision of the Hon'ble High Court of Gujarat in the case of PCIT Vs. Parivar Television Pvt Ltd Tax Appeal No. 674/2023 order dated 09.10.2023. 12. The ld. counsel for the assessee argued that there was no valid satisfaction recorded by the Assessing Officer in his order u/s 143(3) for initiating penalty u/s 271D of the Act. The ld. counsel for the assessee submitted that unless the Assessing Officer initiates proceedings and records satisfaction in the body of the assessment order u/s 143(3), no penalty u/s 271D of the Act can be levied. 13. Per contra, the ld. DR fairly admitted that there was no satisfaction recorded in the assessment order. 14. We have heard the rival submissions and have perused the relevant material on reco....

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....rges that the Assessing Officer has to record his satisfaction in the assessment order u/s 143(3) of the Act for initiating penalty proceedings u/s 271D of the Act for violation of provisions of section 269SS of the Act. In this case, assessment order u/s 143(3) r.w.s 147 of the Act was passed on 27.12.2019 for A.Y 2016-17 and on 18.12.2019 for A.Y 2017-18. The JCIT issued notice u/s 271D of the Act on 30.03.2022 for both the A.Ys and levied penalty u/s 271D of the Act on 31.03.2022. 18. The Assessing Officer, in his order u/s 143(3)/147 of the Act for both the A.Ys has recorded penalty proceedings u/s 271(1)(c) of the Act to be initiated separately. The Assessing Officer, however, has not recorded any satisfaction to initiate penalty u/....