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TMI Blog2025 (1) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... ions made in the assessment order passed u/s 153C and the same was quashed, accordingly the penalty levied u/s 271D also does not survive. The similar issue was considered in the case of Ravi Nirman Nigam Ltd. [2024 (7) TMI 87 - ITAT MUMBAI] - we are inclined to delete the penalty levied u/s 271D - Appeal filed by the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... the same to the appellant d) the contra entry had the effect of negating a pre-existing debit in the same account, which stood 'self proved' not requiring any confirmating letter or so; and e) the credit was not in the nature of I deposit or loan accepted by the appellant within the meaning of section 26955 of the Act. should have held that there was no violation of the provisions of section 269SS of the Act and levy of penalty was absolutely illegal, unjust and not sustainable either on facts or in law." 5. Ld. AR of the assessee submitted that against the assessment order u/s 153C of the Act, assessee preferred an appeal before the ld. CIT (A) and ld. CIT (A) deleted the addition on the basis of notices issued u/s 153C is void ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the assessment order passed u/s 153C and the same was quashed, accordingly the penalty levied u/s 271D also does not survive. The similar issue was considered by the ITAT Bench in the case of Ravi Nirman Nigam Ltd. (supra) and held as under :- "9. We have heard the rival contentions and perused the material on record. Admittedly, it is a fact on record that the reassessment proceedings, u/s. 147 of the Act in the course of which penalty proceedings u/s. 271D and 271E were initiated have been quashed as void ab initio by the Co-ordinate Bench. This fact was put forth before the ld. CIT(A) by the assessee but has been negated to upheld the penalty imposed by the ld. Assessing Officer. Based on these facts, we have perused the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (supra), and the decision of the Co-ordinate Bench of ITAT, Chandigarh in the case of Karan Empire Pvt. Ltd. (supra), which has dealt with the decision of Hon'ble Supreme Court as well as similar contentions put forth by ld. Sr. DR, we delete the levy of penalty u/s. 271E of the Act amounting to ₹ 11,40,000/-. Accordingly, ground No.1 taken by the assessee is allowed. All other grounds taken by the assessee are thus, rendered academic in nature. 11. In the result, appeal of the assessee is allowed." 8. Respectfully following the above decision, we are inclined to delete the penalty levied u/s 271D of the Act. 9. In the result, the appeal filed by the assessee is allowed. Order pronounced in the open court on this 15th day of Ja ..... X X X X Extracts X X X X X X X X Extracts X X X X
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