Neetu Kalra Vs CIT (ITAT Delhi)
Delhi ITAT Deletes Section 271D Penalty on Co-owner Following Rectification Deed and Principle of Parity
The Delhi ITAT deleted the penalty levied under section 271D for alleged violation of section 269SS, holding that the assessee, being a co-owner of the property, was entitled to the same relief already granted to the other co-owner. The dispute arose because the sale deed incorrectly recorded the dates of receipt of cash consideration as 2016 instead of the actual year 2014, leading the Department to initiate penalty proceedings. Subsequently, a registered Deed of Rectification was executed correcting the dates.
The Tribunal noted that in the case of the assessee’s mother-in-law, who was the other co-owner of the same property, the Assessing Officer had accepted the rectification deed and dropped the penalty proceedings under section 271D. Since both co-owners were parties to the same transaction and received identical treatment of facts, there was no justification for sustaining the penalty only in the assessee’s case.
Applying the principle of parity, the Tribunal held that the assessee deserved identical relief. Accordingly, it set aside the impugned order and directed deletion of the penalty under section 271D. The assessee’s appeal was allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
