Section 271D Penalty Quashed Because Transaction Was Accepted as Genuine

Jagdish Prashad Gupta Vs JCIT (ITAT Delhi) No Addition, No Penalty – Section 271D Quashed The ITAT Delhi held that penalty of ₹9.80 lakh under Section 271D was unsustainable where cash received on sale of immovable property was duly deposited in the bank and offered to tax. The Assessing Officer, while completing assessment under Section 143(3), did not doubt the genuineness or source of the transaction and made no addition under Section 68, thereby accepting the transaction as genuine. The Tribunal held that once the primary transaction itself is accepted, penalty for violation of Section...