9911796707
TMI Blog2024 (7) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by the revenue in reasonable time. Scope of introduction of amendment - Income Tax Laws are very complex laws, every year amendments have come, and sometime even professional commit many mistakes. Therefore having regard to the fact that this is the first year immediately after the introduction of amendment, coupled with the fact that the persons from whom payments were to be made could not be able to arrange the Demand Drafts, due to closing of banking hours. The assessee has also filed confirmations from the buyers who confirmed that they could not be able to get the Demand Draft due to restricted banking hours. Therefore, we are of the view that there was reasonable cause and explanation of the assessee would be treated as bonafide, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings under section 271D of the Act. During the course of penalty proceedings, the assessee offered his explanation before the NFAC and contended that there was a reasonable cause for accepting the amount in cash. However, the assessing authority could not find any force in the arguments of the assessee and levied penalty of Rs. 8,39,000/- i.e. equivalent to the cash received by the assessee. 3. Aggrieved with the order of the AO (NFAC), the assessee filed appeal before the ld. CIT(A) and interalia contended that the penalty proceedings were initiated by the JCIT after a lapse of around 4 years, cannot be held to be in a reasonable time. The assessee further argued that there was bonafide reasons for the assessee for accepting the payments i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t out anything contrary to the facts of the case. Therefore, we are of the view that the penalty was not initiated by the revenue in reasonable time. A reference can be made to the judgment of Bangalore Bench in the case of Sree Rajendra Suri Gurumandir Trust in ITA No.751/Bang/2023 vide order dated 05.12.2013, wherein it is held as under:- 3.2.1 Referring to the decision of the Cochin Bench of the Tribunal in the case of Noble Pictures vs. JCIT reported in 90 ITD 248, she submitted that the Tribunal in the said decision has held that there should be a reasonable time within which penalty proceeding is to be initiated or to be completed. Even if a time is not prescribed under the law, however, the penalty cannot hang on the head of an asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of some proceedings before initiation of the penalty proceedings. We think it appropriate to reproduce the relevant findings of the coordinate bench:- 11. Therefore, it is pre-requisite condition that the initiation of penalty 271D/271E of the Act, there must be assessment proceedings or proceeding arising from assessment order are pending in the case of the assessee. Accordingly in the facts and circumstances of the case and following the judgment of Hon'ble Supreme Court as well as Coordinate Bench of the Tribunal in case of Vijayaben G. Zalavadia vs. JCIT (supra), we hold that the penalty levied u/s 271D of the Act without any assessment proceedings in the case of eh assessee is not valid and liable to be quashed. We order accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence of opinion. It is not uncommon to have dissenting opinion on the question of law, in the courts 11. Lastly, we observe that other persons have also received the cash in this very same transaction. However, they have been spared by the department without any plausible reasons. It is settled position of law that revenue cannot adopt the tactics of pick and choose while assessing the citizens of India, as it would be violative of Article 14 of the constitution. Reference can be made to the decision of Hon ble Apex Court in the case of UOI Vs Kaumudini Narayan Dayal reported in 249 ITR 219(SC). 11. In view of the above discussion, we delete the penalty and allow the appeal of the assessee. 12. In the result, the appeal filed by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
