| Question And Answer | |
|---|---|
| Subject: | Penalty u/s 271D |
| Category: | Income-Tax |
| Querist: | Pawan Singla |
| Answered by: | Law Intern |
| Tags: | 271D, penalty u/s 271D, Time limit assessment |
| Date: | February 8, 2026 |
During search at third party , certain documents were seized . These document revealed transactions of acceptance of cash loans etc. As these entries are beyond 5 years relevant to assessment year for which reopening can be done, AO instead of reopening ( as AYs are time barred) ,directly issues notices of penalty u/s 271D . Where this is valid notice ?
No. In the absence of a valid assessment order, penalty is not leviable. The AO has to record his satisfaction in the assessment order, which is not possible as the assessment years are time-barred.
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