GPR Textiles P. Ltd. Vs ACIT (Madras High Court)
Madras High Court held that the Assessment Officer has not recorded the reasons for arriving at a subjective satisfaction to initiate penalty proceedings under Section 271E of the Act, which is mandatory. Thus, order set aside.
Facts- These writ petitions have been filed by the petitioner challenging the impugned orders passed by the 1st Respondent u/s 271D of the Income Tax Act, 1961 dated 29.04.2024.
Notably, initially assessment proceedings were initiated against the petitioner on 29.09.2021 and thereafter the same were dropped u/s. 270-A of the Income Tax Act, 1961 and again for the same assessment period, show cause notices were issued on 22.04.2024. The Petitioner submitted its reply on 26.04.2024, but the 1st Respondent without considering the reply filed by the Petitioner has passed the impugned orders which are in violation of principles of natural justice. He further submitted that the Assessing Officer has not recorded his satisfaction for arriving at a conclusion to impose penalty on the petitioner. Therefore, the impugned orders are liable to be set aside.
Conclusion- Held that on a perusal of the impugned orders, it is seen that the Assessment Officer has not recorded the reasons for arriving at a subjective satisfaction to initiate penalty proceedings under Section 271E of the Act, which is mandatory.
