Case Law Details
Dr. Sankaran Sundar Vs ITO (ITAT Bangalore)
The penalty imposed u/s 271D of the I.T.Act is independent of assessment proceedings completed u/s 143(3) of the I.T.Act. Even without completion of assessment u/s 143(3) of the I.T.Act, penalty u/s 271D of the I.T.Act can be imposed for violation of provisions of section 269SS of the I.T.Act. In other words, the penalty proceedings u/s 271D of the I.T.Act is unconnected with the assessment order passed u/s 143(3) of the I.T.Act. The assessee in the instant case has only settled the matter under VSVS 2020 insofar as the issues that are raised in the appeal filed as against the assessment u/s 143(3) of the I.T.Act. the assessee has not settled the penalty imposed u/s 271D of the I.T.Act under VSVS 2020. Therefore, the CIT(A) has erred in rejecting the appeal of the assessee stating that the issue raised in the appeal has become infructuous and the same has been dismissed as infructuous. The issue is restored to the files of the CIT(A). The CIT(A) is directed to adjudicate the grounds raised before him as regards the merits of imposition of penalty u/s 271D of the I.T.Act. It is ordered accordingly.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal at the instance of the assessee is directed against CIT(A)’s order dated 15.06.2022. The relevant assessment year is 2017-2018.
2. The brief facts of the case are as follows:
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