Amir Ahmed Vs JCIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, allowed the appeals filed by two assessees for Assessment Year 2017-18 against separate orders of the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (CIT(A)/NFAC), which had upheld penalties imposed under Section 271D of the Income-tax Act, 1961.
At the outset, the Tribunal considered the assessees’ applications seeking condonation of a delay of 945 days in filing the appeals. The assessees explained that the delay had occurred due to circumstances beyond their control. As the Revenue did not rebut this explanation, the Tribunal condoned the delay by relying on the Supreme Court’s decision in Collector, Land Acquisition vs. Mst. Katiji & Others.
The substantive issue before the Tribunal was the validity of penalties levied under Section 271D for alleged violation of Section 269SS. The Assessing Officer had held that the assessees violated Section 269SS by receiving a part of the sale consideration arising from the transfer of immovable properties in a manner attracting the penalty. These penalties were subsequently upheld by the CIT(A).
Before the Tribunal, the assessees raised a legal objection that neither of the Assessing Officers had initiated penalty proceedings under Section 271D in the corresponding assessment orders. This contention remained unrebutted by the Revenue.
