TaxTMI 
TaxTMI 
2026 (9) TMI 225
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....consent of both the sides we have taken ITA No. 2108/AHD/2026 as the lead matter. During the course of hearing both the sides had agreed that our finding/adjudication in ITA No.2108/AHD/2026 pertaining to Assessment Year 2014-2015 shall apply mutatis mutandis to the other 6 appeals pertaining to Assessment Years 2015-2016 to 2019-2020 and 2021-2022. ITA No.2108/AHD/2026 (Assessment Year 2014-2015) 2. This appeal has been preferred by the Assessee challenging the Order, dated 26/03/2026, passed the Learned Principal Commissioner of Income Tax (Central), Ahmedabad [hereinafter referred to as 'the PCIT'] passed under Section 263 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] whereby the Assessment Order, dated 21/03/2....
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.... erred in directing initiation of penalty proceedings u/s 271D of the Act on the basis of third-party seized material which were not recovered from the appellant's possession, are dumb documents without evidentiary value and were never authenticated or signed by the appellant, and in respect of which no opportunity of cross-examination has been afforded and without there being any material whatsoever on record establishing the actual "receipt" by the appellant, which is the mandatory ingredient for attracting Section269SS of the Act. 5. The appellant craves leave to add, alter, amend and/or withdraw any ground or grounds of appeal either before or during the course of hearing of appeal. 4. We have heard both the sides and ha....
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....t High Court had quashed the order of revision passed under Section 263 of the Act. 8. Per Contra, Learned Departmental Representative placed reliance upon the order passed by the Learned PCIT. 9. We have given thoughtful consideration to the rival submissions. 10. On perusal of the judgment of the Hon'ble Gujarat High Court in the case of Dilip Patel Vs. Principal Commission of Income Tax (Central): [2026] 311 Taxman 250 (Gujarat) [01/05/2026], it emerges that Learned PCIT has issued show-cause notice under Section 263 of the Act seeking to set-aside the Assessment Order passed in that case, inter alia, on account of failure of the Assessing Officer to record satisfaction and/or to initiate penalty proceedings under Section 271D f....
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....me reads as under: "Penalty for failure to comply with the provisions of Section 269SS: 271D. [(1)] If a person takes or accepts any loan or deposit [or specified sum] in contravention of the provisions of Section 269SS, he shall be liable to pay, by way of penalty, a sum equal to the amount of the loan or deposit [or specified sum] so taken or accepted. (2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner " Provided that any penalty under sub-section(1), on or after 1 day of April, 2025, shall be imposed by the Assessing Officer." 5.6 A perusal of the provision of Section 271D of the Act reveals that the Assessing Officer is authorized or has the jurisdictio....
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....ting accepting cash loans/payments beyond specified limits) of the Act. Section 271(1) of the Act makes the following reference to satisfaction of the income tax authority initiating penalty proceeding: "Section 271(1) : If the Income-tax Officer or the Appellate Assistant Commissioner in the course of any proceedings under this Act, is satisfied that any person..." (Emphasis Supplied) Whereas Section 271D of the Act does not make any reference to such 'satisfaction' of the income tax authority initiating penalty proceeding under Section 271D of the Act. Therefore, it cannot be said that there was failure on part of the Assessing Officer in recording satisfaction. 13. In view of the above and respectfully following the ....