Levy of penalty u/s 271D without any assessment proceedings is invalid

Umakant Sharma Vs JCIT (ITAT Indore) ITAT Indore held that the penalty levied u/s 271D of the Income Tax Act without any assessment proceedings in the case of the assessee is not valid and liable to be quashed. Facts- There was a search and seizure action in case of M/s. S. R. Ferro Alloys Group. During the course of search and seizure certain documents were impounded from Shri Ramesh Chand Upadhya showing the cash loan given to various persons including assessee. Accordingly, penalty u/s 271D was imposed on account of contravention of section 269SS of the Income Tax Act. CIT(A) confirmed the ...