SHANMUGAVEL SUDARARAJAN,DINDIGUL vs. ITO, WARD-1, , DINDIGUL
What did the Tribunal hold?
The Tribunal, in the interest of justice, set aside the appeal to the Ld. CIT(A) for de novo adjudication on merits, granting the assessee one last opportunity to present its case. It was explicitly warned that further non-compliance would lead to the impugned order of the Ld. CIT(A) prevailing without leniency.
What were the facts?
The AO levied a penalty under Section 271D for contravention of Section 269SS because the assessee received Rs. 14 lakhs in cash for the sale of immovable property. The Ld. CIT(A) dismissed the assessee's appeal ex-parte due to non-appearance, confirming the penalty. The assessee also failed to appear before the Income Tax Appellate Tribunal.
What were the issues?
Whether the penalty levied under Section 271D for receiving cash consideration in excess of the prescribed limit was justified, and if the assessee, despite repeated non-appearances before appellate authorities, should be granted another opportunity for hearing.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI S.R.RAGHUNATHA
आदेश / O R D E R
PER MANU KUMAR GIRI, JM:
This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals), NFAC, Delhi, [CIT(A)] dated 24.06.2025 for Assessment Year 2018-19.
Brief facts of the case are that the AO levied penalty u/s 271D of the Act for the contravention of section 269SS of the Act as the assessee had sold immoveable property for the value of Rs.14 lakhs and received the entire sale consideration in cash. Aggrieved by the penalty u/s 271D, the assessee filed appeal before the ld. CIT(A). However, before the ld.CIT(A), assessee didn’t appear, hence the ld.CIT(A) dismissed the appeal ex-prate confirming the penalty u/s 271D of the Act. Now, assessee is further in appeal before us.
Before us also none appeared for the assessee despite service of notice for hearing. The Ld. Addl. CIT-DR pleaded for dismissal of the appeal on the ground that the assessee is habitual defaulter in prosecuting the case. He further argued that no explanation has been given by the assessee for the contravention of section 269SS of the Act.
We have gone through the orders of lower authorities and submission addressed by the ld. Departmental Representative. We are of the considered view that in the interest of justice, assessee should be given one more opportunity before the ld.CIT(A) to plead and file all relevant evidences/documents to prosecute its appeal. Therefore, in the light of aforesaid factual position, we deem it fit to set aside the appeal to the file of the ld.CIT(A) for de novo adjudication of appeal on merits. The Ld.CIT(A) who shall proceed for de novo adjudication of appeal after providing proper opportunity of hearing to the assessee as per law. The assessee is directed to substantiate its case forthwith without any fail. We make it clear that if assessee again fails to prosecute the penalty appeal before the ld.CIT(A), the impugned order of the Ld.CIT(A) will prevail and no leniency will be given to the assessee.
Order pronounced on the 27th day of October, 2025, in Chennai.
More judgments on Section 271D
- Sujatha Vaddanapu, Nalgonda vs ITO, Ward-1, NalgondaITA 2048/HYD/2026[2020-21]Status: Disposed16 Oct 2026AY 2020-21
- Inder Lal Ramrakhyani, Dhamtari vs ITO, DhamtariITA 694/RPR/2026[2014-15]Status: Disposed14 Oct 2026AY 2014-15
- Assistant Commissioner of Income Tax… vs Harshit Singhania Buildcon, RaipurITA 560/RPR/2026[2022-23]Status: Disposed14 Oct 2026AY 2022-23
- Shree Jalaram Finance, Borsad vs Income Tax Officer, Ward 1(3)(4), PetladITA 1785/AHD/2026[2000-01]Status: Disposed13 Oct 2026AY 2000-01
- Veera Mani Kumari Vattikooti, Hyderabad vs ITO, Ward -11(1), HyderabadITA 1218/HYD/2026[2016-17]Status: Disposed9 Oct 2026AY 2016-17
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