Sandeep Kumar Sethia Vs. ITO, Ward-44(2), Kolkata

Parties Involved

Facts Summary

The assessee, Sandeep Kumar Sethia, filed his return of income for the assessment year 2011-12 declaring a total income of Rs. 1,97,760/-. The assessment proceedings were completed under section 143(3) on 30.03.2014, assessing the total income at Rs. 2,34,660/-. During the assessment, it was noticed that the assessee had received cash totaling Rs. 2,59,42,000/- from 34 parties for brokering land/purchase deals with M/s Pushpanjali Pvt. Ltd, in violation of section 269SS of the Income Tax Act. Consequently, penalty proceedings under section 271D were initiated, and a penalty of Rs. 2,59,42,000/- was levied. The assessee appealed this penalty order before the Commissioner of Income Tax (Appeals)-NFAC, Delhi, who dismissed the appeal. Aggrieved by this, the assessee filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the order passed under section 250 is bad in law and on facts.
• 2. Whether the Hon'ble CIT(A) erred in law and on facts by failing to annul the penalty under section 271D.
• 3. Whether the Show Cause Notice dated 26.09.2014 was issued with an unreasonably short response time.
• 4. Whether the Ld. AO failed to provide a reasonable opportunity for the Appellant to demonstrate no violation of Section 269SS of the Income Tax Act, 1961.
• 5. Whether Section 269SS applies only to loans and deposits and not to advance payments for the purchase of plots.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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