Penalty imposed by the AO u/s 271D of the Income Tax Act, 1961

Last updated: 14 August 2021

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This judgement concerns two appeals against a penalty imposed under Section 271D of the Income Tax Act, 1961, for the assessment years 2007-08 and 2008-09. The penalty, totalling £14 lakh, was levied by the Assessing Officer (AO) due to the assessee taking loans in cash. The Commissioner of Income Tax (Appeals) upheld the AO's decision. The Income Tax Appellate Tribunal, in the absence of the assessee's representative, heard the case ex parte and, for statistical purposes, allowed both appeals.

Court :
ITAT Delhi

Brief :
These two appeals are against the order of confirming the penalty u/s 271D of Rs. 14 lac. for Assessment Years 2007-08 & 2008-09.

Citation :
ITA Nos.161 & 162/Del/2018

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI
BENCH ‘B’, NEW DELHI
BEFORE SH. ANIL CHATURVEDI, ACCOUNTANT MEMBER
AND SH. KULDIP SINGH, JUDICIAL MEMBER
(THROUGH VIDEO CONFERENCING)
ITA Nos.161 & 162/Del/2018
(Assessment Years : 2007-08 & 2008-09)

Devendra Sharad Kumar
Damle
C-70, 1st Floor, Inderpuri,
Delhi-110012
PAN : AEQPD 4446 R

(APPELLANT)

JCIT
Range – 61,
New Delhi

(RESPONDENT)

Assessee by --None--
Revenue by Shri Mahesh Thakur, Sr. D.R.
Date of hearing: 26.07.2021
Date of Pronouncement: 28.07.2021

ORDER

These two appeals are against the order of confirming the penalty u/s 271D of Rs. 14 lac. for Assessment Years 2007-08 & 2008-09.

2.In the absence of any representative from the side of assessee, we proceed to dispose of the appeal ex parte qua the assessee after considering the material on record and after hearing by the Learned DR.

3.Before us, at the outset, Learned DR submitted that the issue involved in both the appeals are identical. In view of the
aforesaid submission of Learned DR, we for the sake of convenience proceed to dispose of both the appeals by a consolidated order but for the sake of reference refer to the facts for A.Y. 2007-08 in ITA No.161/Del/2018.

4.Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who vide order dated 10.11.2017
(Appeal Nos.10493/2016-17 & 10494/2016-17) respectively, dismissed the appeal of the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal before us and has raised.

5.Before us, Learned DR submitted that since assessee taken loan in cash, AO was justified in levying the penalty u/s 271D of the Act and CIT(A) has rightly confirmed the action of AO. He thus supported the order of CIT(A).

6.Thus the grounds in both the assessee’s appeals are allowed for statistical purposes.

In the result, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 28.07.2021.

Please find attached the enclosed file for the full judgement

FAQ :

Section 271D of the Income Tax Act, 1961, deals with penalties for contravening the provisions relating to the mode of acceptance or repayment of loans or deposits.

The penalty was imposed because the assessee took loans in cash, which is a contravention of the provisions of the Income Tax Act.

The total penalty imposed was £14 lakh for the assessment years 2007-08 and 2008-09.

The Commissioner of Income Tax (Appeals) dismissed the assessee's appeal and confirmed the penalty imposed by the Assessing Officer.

The Income Tax Appellate Tribunal allowed both appeals of the assessee for statistical purposes, though the case was heard ex parte due to the absence of the assessee's representative.