Section 271D of the Income-tax Act, 1961—Penalty— Matter restored back to AO to consider all the materials afresh and pass appropriate orders, having regard to the current position, in accordance with law on the merits as to the valuation, if any, under Section 269(SS).

Facts: Whether the imposition of penalty of Rs.1,06,44,500/- under Section 271D was justified in law?"

Held, that Court is of the opinion that the ITAT completely ignored its previous order which had the effect of restoring back to the AO the matter for the relevant AYs for fresh assessment. In these circumstances, the Revenue's contention that the penalty amount acquired a distinct character - and a life, as it were, other than the assessment, cannot be sustained. The impugned order is accordingly set-aside. It is, of course, open to the AO to consider all the materials afresh and pass appropriate orders, having regard to the current position, in accordance with law on the merits as to the valuation, if any, under Section 269(SS). The question of law is accordingly answered in favour of the assessee and against the Revenue. - DY. CIT V/s ASIAN CONSOLIDATED INDUSTRIEAL LTD. - [2018] 1 ITCD Online 379 (DEL)