GOURI SANKAR PATRO,GANJAM V. ITO, WARD-1, BERHAMPUR

ITA 700/CTK/2025

AI Insights

The case revolves around an appeal by Gouri Sankar Patro against a penalty imposed by the Income Tax Officer (ITO), Ward-1, Berhampur, which was confirmed by the CIT(A), National Faceless Appeal Centre, Delhi. The penalty was levied under section 271D of the Income Tax Act, 1961, following the invocation of section 269SS, treating the sale consideration of Rs. 50,008 from the sale of agricultural land as a loan or deposit. The assessee contested this interpretation, leading to the appeal. The Tribunal, after considering the submissions and the nature of the transaction, ruled in favor of the assessee, stating that the transaction did not fall under the ambit of section 269SS, and thus, the penalty was not applicable.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834260 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2019-2020
• Appeal Filed On: 10-12-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIJAY SINGH
• Assessee Lawyers: SWARAJYA SAHU

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.700/CTK/2025 (नििाारण वर्ा / Assessment Year : 2019-2020) Gouri Sankar Patro, Nandighosh City, Flat No.104, B Block, Badriraj Nagar, Berhampur, Ganjam-760003 Vs ITO Ward-1, Berhampur PAN No. :AMWPP 5599 B (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri Swarajya Sahu, AR राजस्व की ओर से /Revenue by : Shri Vijay Singh, Sr.DR सुनवाई की तारीख / Date of Hearing : 03/02/2026 घोषणा की तारीख/Date of Pronouncement : 03/02/2026 आदेश / O R D E R Per George Mathan, JM : This is an appeal filed by the assessee against the order dated 25.09.2025 passed by ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2019-2020, thereby confirming the of penalty levied u/s 271D of the Act. 2. It was submitted by the Ld.AR that the assessee had sold agricultural land and had received sale consideration of Rs.50,008/-. It was the submission that the AO invoked the provisions of section 269SS of the Act and treated the same as loan of deposits and levied penalty u/s.271D of the Act. It was submission that this was not a loan on deposits. It was prayer that the penalty as levied u/s.271D of the Act may be cancelled. Printed from counselvise.com ITA No.700/CTK/2025 2 3. In reply, the Ld.Sr DR vehemently supported the order of the AO and CIT(A). 4. We have considered the rival submissions. The facts clearly shows that the said sale consideration of Rs.50,008/- has been received on the sale of agricultural property and the provision of section 269SS of the Act will not apply to the facts of the case. This being so, where the very foundation of the levy of penalty being unsustainable the penalty is not leviable in the present case and consequently the penalty as levied u/s.271D and 271D of the Act and as confirmed by the Ld.CIT(A) stands deleted. 5. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 03/02/2026. Sd/- (LAXMI PRASAD SAHU) Sd/- (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 03/02/2026 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलार्थी / The Appellant- 2. प्रत्यर्थी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ड फाईल / Guard file. सत्यापपत प्रतत //True Copy// Printed from counselvise.com "