Assessee appeals that order under section 27ID of the Income Tax Act was barred by limitation and therefore, deserved to be quashed

INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “G”: NEW DELHI
BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
(Through Video Conferencing)

ITA No. 783/Del/2020

Assessment Year: 2010-11

Shagun Jewellers Pvt. Ltd,
A-3/179, Paschim Vihar, West
Delhi, Delhi
PAN: AAFCS4608A

Appellant

Vs

JCIT,
Range-23,
New Delhi

Respondent

Assessee by : Shri Lalit Mohan, CA
Revenue by: Shri Prakash Dubey, Sr. DR
Date of Hearing 17/05/2021
Date of pronouncement 26/07/2021

O R D E R

1. This appeal is filed by the assessee against the order of the ld CIT(A)-8, New Delhi [ The ld CIT (A)] dated 15.01.2020 wherein, the appeal filed by the assessee against the order passed u/s 271D of the Income Tax Act, 1961 [The Act] by the Joint Commissioner of Income Tax, Range-23, Delhi,[The ld Adjudicating Authority ] levying penalty of Rs.1,58,00,000/- was confirmed.

2. Brief facts of the case shows that the assessee filed his return of income on 23.09.2010 at Rs. 31,22,920/-. Assessment u/s 143(3) of the Act was not passed. Subsequently, on receipt of information from ld ADIT (Investigation Wing) on 23.03.2016 regarding cash loan received and cash interest paid as well as accommodation entry, assessment proceedings were reopened by issue of notice u/s 148 of the Act on 31.03.2017. Subsequently, the assessment order was passed at Rs. 3,91,79,010/- u/s 143(3) read with section 147 of the Act on 30.12.2017.

3. We have carefully considered the rival contentions and also perused the orders of the lower authorities. We have also perused the orders of the coordinate bench in case of the assessee in ITA No. 9890/Del/2019 for
Assessment Year 2010-11 dated 16.06.2020. This order of the coordinate bench deals with the merits of the addition.

4. On careful perusal of the order of the coordinate bench in assessee’s own case for same assessment year on same subject matter as stated above wherein it has been held that there is no cash transaction entered into by
the assessee with Shri Sant Lal Agarwal, the whole foundation for levy of the penalty u/s 271D has crashed. No information was placed before us by the departmental representative that the above order of the coordinate
bench has been challenged or upset by the higher forum. Thus, the finding of the coordinate bench binds us. In view of the finding of the coordinate bench, we do not have any other alternative but to quash the penalty levied
by the learned assessing officer and confirmed by the learned CIT – A u/s 271D of the act of Rs 1,58,000/- . Accordingly we reverse the orders of the lower authorities and allow ground number 2 of the appeal.

5. In the result, appeal of the assessee is partly allowed. Order pronounced in the open court on 26/07/2021.

Please find attached the enclosed file for the full judgement.