Assessee is partnership concern engaged in business of construction and trading of land .during the FY 31.03.2017 assessment was completed by accepting the income return by the assessee firm on 31.12.2019.

Departmental Auditor has raised the query about not making an addition on account of difference in opening cash as per books and as per last years  financial statement. Ao has issued notice u/Sec.154 on 13.05.2022 which was serve on email of consultant which was not operative and therefore no response was submitted . Ao passed the order U/sec  154 on 3.08.2022 by making an addition of Rs.8 lakhs . AO also made reference to Joint CIT on the basis of observation of Audior about acceptance of sale consideration on sale of Land more than Rs.2 lakhs. To which consultant has given reply about difference in cash of Rs. 8 lakhs. On reference of AO , JcIT has issued SCN 8.4.2022 and 25.08.2022, 7.10.2022 and 17.10.2022and accordingly  has levied penalty of 28 lakhs U/Sec. 271D for contravention of Sec.269SS.

Issues on 28.10.2022 :

1. There is no mention about initiation of penalty proceedings in the assessment order u/Sec. 143(3) and u/Sec. 154 of the Act.

2. Reference to JCIT was made by the AO after passing of assessment order and on the basis of issue raised by departmental Auditor.

3.Whether action of AO by making reference to jcit after completion of assessment order is correct in law. When he has verified the sales accepted the same in assessment order.

3. Whether penalty levied by JCIt is correct.