High Court · Andhra Pradesh2024§271D · §269SS
Grandhi Sri Venkata Amarendra v. JCIT · AP High Court on §271D: no penalty without a recorded §269SS violation
Can a §271D penalty stand without a specific finding of §269SS violation?
No. Absent a finding of §269SS violation supported by independent evidence, beyond the assessee's own letter, §271D penalty cannot be levied.
Reviewed by Sri P. Soma Shekar Reddy, IRS (R), Commissioner of Income Tax (Retd. / VRS) · Published 2026-07-07
Facts in brief
- The AO levied penalty under §271D for alleged cash loan acceptance.
- There was no finding of a §269SS violation, and no evidence beyond reliance on the assessee's letter.
Issue before the bench
Whether §271D penalty survives without an evidentiated §269SS finding.
Held
The AP High Court ruled the AO could not levy the penalty; the violation finding is a jurisdictional precondition.
Practitioner takeaway
In every §271D matter, first ask where the §269SS finding is recorded and on what evidence. If it is only the client's own statement, the penalty is vulnerable.
More on this topic: Penalties: §270A, §271D and the preconditions the Department skips · Need this drafted? Appeals Drafting for CA Firms: CIT(A) and ITAT