Sunil Agrawal Son Of Ghanshyam Agarwal v. Joint Commissioner Of Income Tax, Central Jodhpur,Aayakar Bhawan, Paota, C-Road, Jodhpur.aayakar Bhawan, Paota, C-Road, Jodhpur

BENCH AT JAIPUR D.B. Civil Writ Petition No. 1102/2025 Sunil Agrawal Son Of Ghanshyam Agarwal, Aged About 64 Years,Having His Address At K-6B Adarsh Nagar Jaipur 302004. ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle - 4,Jaipur Having Its Address At Room No 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur.Jaipur Having Its Address At Room No 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur. 2. Joint Commissioner Of Income Tax, Central Jodhpur,Aayakar Bhawan, Paota, C-Road, Jodhpur.Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents Connected With D.B. Civil Writ Petition No. 1129/2025 Sunil Agrawal S/o Ghanshyam Agarwal, Aged About 64 Years,Having His Address At K-6B, Adarsh Nagar, Jaipur 302004 ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle- 4,Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur.Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur. 2. Joint Commissioner Of Income Tax, Central, Jodhpur,Aayakar Bhawan, Paota, C-Road, Jodhpur.Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 1156/2025 Sunil Agrawal S/o Ghanshyam Agarwal, Aged About 64 Years,Having His Address At K-6B, Adarsh Nagar, Jaipur 302004 ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle- 4,Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur.Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur. 2. Joint Commissioner Of Income Tax, Central, Jodhpur,Aayakar Bhawan, Paota, C-Road, Jodhpur.Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 1264/2025 Sunil Agrawal S/o Ghanshyam Agarwal, Aged About 64 Years,Having His Address At K-6B, Adarsh Nagar, Jaipur 302004 ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle-4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur.4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur. 2. Joint Commissioner Of Income Tax, Central, Jodhpur,Aayakar Bhawan, Paota, C- Road, Jodhpur.Aayakar Bhawan, Paota, C- Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 15159/2024 Vijay Kumar Chordia Son Of Raj Mal Chordia, Aged About 60Years, Having His Address At 1631, Chordia Bhawan, SonthliWaalon Ka Rasta, Choura Rasta, Jaipur ----Petitioner Versus 1. Deputy Commissioner Of Income Tax, Central Circle - 4,Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, JaipurJaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, JodhpurJodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur ----Respondents Connected With D.B. Civil Writ Petition No. 12783/2024 Hari Mohan Dangayach Son Of Shri Ram Bilas Dangayach,Aged About 75 Years, Resident Of 2, Govind Marg, Jaipur302004. ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle-4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur.4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur. 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 12784/2024 Rakesh Kumar Vijay S/o Shri Nathu Lal Vijay, Aged About 71Years, Resident Of C-66, Saket Colony, Opp. Police Station,Adarsh Nagar, Jaipur. ----Petitioner Versus Hari Mohan Dangayach Son Of Shri Ram Bilas Dangayach,Aged About 75 Years, Resident Of 2, Govind Marg, Jaipur302004. ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle-4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur.4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur. 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 12784/2024 Rakesh Kumar Vijay S/o Shri Nathu Lal Vijay, Aged About 71Years, Resident Of C-66, Saket Colony, Opp. Police Station,Adarsh Nagar, Jaipur. ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle-4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur.-4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur. 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 13019/2024 Hari Mohan Dangayach Son Of Shri Ram Bilas Dangayach,Aged About 75 Years, Resident Of 2, Govind Marg, Jaipur302004 ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle-4, Jaipur, Having Its Address At Room No.416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur.-4, Jaipur, Having Its Address At Room No.416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur. 2. Joint Commissioner Of Income Tax, Central CircleJodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 13053/2024 Rakesh Kumar Vijay, Son Of Shri Nathu Lal Vijay, Aged About71 Years, Resident Of C-66, Saket Colony, Opp. Police Station,Adarsh Nagar, Jaipur ----Petitioner Versus 1. Deputy Commissioner Of Income Tax, Central Circle - 4, Jaipur Having Its Address At Room No. 416, 4Th Floor, Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, JodhpurJodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur ----Respondents D.B. Civil Writ Petition No. 16619/2024 Radha Mohan Maheshwari S/o Badri Narain Totla, Aged About55 Years, Having His Address At M-54 Mahesh Colony TonkPhatak Jaipur ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle-4, Jaipur Having Its Address At Room No. 416 4Th FloorJeevan Nidhi Lic Building Ambedkar Circle Jaipur4, Jaipur Having Its Address At Room No. 416 4Th FloorJeevan Nidhi Lic Building Ambedkar Circle Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur.Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 16628/2024 Radha Mohan Maheshwari Son Of Badri Narain Totla, AgedAbout 55 Years, Having His Address At M-54, Mahesh Colony,Tonk Phatak, Jaipur ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle -4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, JodhpurJodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur ----Respondents D.B. Civil Writ Petition No. 16630/2024 Radha Mohan Maheshwari Son Of Badri Narain Totla, AgedAbout 55 Years, Having His Address At M-54, Mahesh Colony,Tonk Phatak, Jaipur. ----Petitioner Versus Jaipur Having Its Address At Room No. 416, 4Th Floor, Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur. ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle -4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, JodhpurJodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur ----Respondents D.B. Civil Writ Petition No. 16630/2024 Radha Mohan Maheshwari Son Of Badri Narain Totla, AgedAbout 55 Years, Having His Address At M-54, Mahesh Colony,Tonk Phatak, Jaipur. ----Petitioner Versus Jaipur Having Its Address At Room No. 416, 4Th Floor, Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur. 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C- Road, Jodhpur.Jodhpur, Aayakar Bhawan, Paota, C- Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 16631/2024 Radha Mohan Maheshwari S/o Badri Narain Totla, Aged About55 Years, Having His Address At M-54, Mahesh Colony, TonkPhatak, Jaipur ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle-4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur.4, Jaipur Having Its Address At Room No. 416, 4ThFloor, Jeevan Nidhi, Lic Building, Ambedkar Circle,Jaipur. 2. Joint Commissioner of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur.Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 17471/2024 Nirmal Kumar Bardiya, Son Of Sagarmal Kalyanmal Jain, AgedAbout 63 Years, Having His Address At 24, Bardiya Colony,Museum Road, Jaipur ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle -4Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, JaipurJaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, JodhpurJodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur ----Respondents D.B. Civil Writ Petition No. 17584/2024 Nirmal Kumar Bardiya, Son Of Sagarmal Kalyanmal Jain, AgedAbout 63 Years, Having His Address At 24, Bardiya Colony,Museum Road, Jaipur ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle -4Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, JaipurJaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, JodhpurJodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur ----Respondents D.B. Civil Writ Petition No. 17600/2024 Nirmal Kumar Bardiya, Son Of Sagarmal Kalyanmal Jain, AgedAbout 63 Years, having his Address At 24, Bardiya Colony,Museum Road, Jaipur ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle -4Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, JaipurJaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, JodhpurJodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur ----Respondents D.B. Civil Writ Petition No. 18301/2024 Dwarka Prasad Khandelwal Son Of Shri Jagdish PrasadKhandelwal, Aged About 53 Years, Resident Of S-5, MahaveerNagar, Tonk Road, Jaipur. ----Petitioner Versus ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle -4Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, JaipurJaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, JodhpurJodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur ----Respondents D.B. Civil Writ Petition No. 18301/2024 Dwarka Prasad Khandelwal Son Of Shri Jagdish PrasadKhandelwal, Aged About 53 Years, Resident Of S-5, MahaveerNagar, Tonk Road, Jaipur. ----Petitioner Versus 1. Deputy Commissioner Of Income Tax, Central Circle-4,Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur.Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur. 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur.Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 18942/2024 Sanjeev Kumar Jain S/o Shri Chand Mal Jain, Aged About 62Years, R/o S-1A, Mahaveer Nagar, Tonk Road, Jaipur. ----Petitioner Versus 1. Deputy Commissioner Of Income Tax, Central Circle -4, Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur.Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur. 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur.Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 18985/2024 Sanjeev Kumar Jain Son Of Shri Chand Mal Jain, Aged About62 Years, Resident Of 5-1A, Mahaveer Nagar, Tonk Road,Jaipur. ----Petitioner Versus 1. Deputy Commissioner Of Income Tax, Central Circle-4,Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur.Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur. 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur.Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents D.B. Civil Writ Petition No. 422/2025 Ravi Shankar Jhanwar Son Of Shri Ghasi Lal Jhanwar, AgedAbout 63 Years, Resident Of 8, Barkat Nagar, Tonk Road, Jaipur302018 ----Petitioner Versus 1. Assistant Commissioner Of Income Tax, Central Circle 4,Jaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, JaipurJaipur Having Its Address At Room No. 416, 4Th Floor,Jeevan Nidhi, Lic Building, Ambedkar Circle, Jaipur 2. Joint Commissioner Of Income Tax, Central Circle,Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur.Jodhpur, Aayakar Bhawan, Paota, C-Road, Jodhpur. ----Respondents For Petitioner(s) : Mr.Siddharth Ranka, Adv. withMr.Rohan Chatter, Adv. Ms.SatwikaJha, Adv., Ms.Apeksha Bapna, Adv.,Mr.Muzaffar Iqbal, Adv. & Mr.SaurabhHarsh, Adv. Mr.Rohan Chatter, Adv. Ms.SatwikaJha, Adv., Ms.Apeksha Bapna, Adv.,Mr.Muzaffar Iqbal, Adv. & Mr.SaurabhHarsh, Adv. For Respondent(s): Mr.Siddharth Bapna, Adv., Mr.SarveshJain, Adv., Mr.Meyhul Mittal, Adv. &Mr.Rahul Kumar, Adv. Jain, Adv., Mr.Meyhul Mittal, Adv. &Mr.Rahul Kumar, Adv. HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MRS. JUSTICE SHUBHA MEHTA Order 30/01/2025 -AVNEESH JHINGAN, J (ORAL): 1.These writ petitions are being decided by this order as thefacts and issues involved are same. Though in some of the casespenalty under Section 271D and in others under Section 271E ofthe Income Tax Act, 1961 (hereafter ‘the Act of 1961’) wasimposed. The language of Section 271D and Section 271E areanalogous. For the sake of convenience, the facts are being takenfrom D.B. Civil Writ Petition No.1102/2025. For Respondent(s): Mr.Siddharth Bapna, Adv., Mr.SarveshJain, Adv., Mr.Meyhul Mittal, Adv. &Mr.Rahul Kumar, Adv. Jain, Adv., Mr.Meyhul Mittal, Adv. &Mr.Rahul Kumar, Adv. HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MRS. JUSTICE SHUBHA MEHTA Order 30/01/2025 -AVNEESH JHINGAN, J (ORAL): 1.These writ petitions are being decided by this order as thefacts and issues involved are same. Though in some of the casespenalty under Section 271D and in others under Section 271E ofthe Income Tax Act, 1961 (hereafter ‘the Act of 1961’) wasimposed. The language of Section 271D and Section 271E areanalogous. For the sake of convenience, the facts are being takenfrom D.B. Civil Writ Petition No.1102/2025. 2.This petition is filed seeking quashing of notices dated01.10.2024, 03.01.2025, 13.01.2025 issued under Section 271Eof the Act of 1961, for Assessment Year 2012-2013. 3.The brief facts are that search was conducted on thepremises of the petitioner. The proceedings initiated under Section148 of the Act of 1961 culminated in re-assessment order dated12.03.2024 resulting in additions of Rs.9,90,000/- andRs.23,785/- under Sections 69A and 69C of the Act of 1961respectively. The order was passed after approval from theAdditional Commissioner of the Income Tax (hereinafter ‘ACIT’).On 01.10.2024 notice was issued to the petitioner for impositionof penalty under Section 271E of the Act of 1961. In the responsedated 16.10.2024 the petitioner relied upon the decision of theSupreme Court in Commissioner of Income Tax Vs. Jai LaxmiRice Mills reported in [(2015) 379 ITR 521 (SC)] to contendthat there was no satisfaction recorded in the reassessment order for initiating the penalty proceedings under section 271E of theAct of 1961. The objections filed were rejected and a notice dated03.01.2025 was issued. Hence, the present writ petition. 4.Learned counsel for the petitioners submitted that the issueinvolved that penalty under section 271D cannot be imposed ifthere was intent of AO to do so, is covered by decision of theSupreme Court in Jai Laxmi Rice Mills(supra). 5.Learned counsel for the respondent submitted that reply filedin the present writ petition is adopted in all the connectedmatters. Reliance is placed upon the annexures filed with the replyto the submit that the Deputy Commissioner of Income Tax(hereafter ‘DCIT’) vide communication dated 01.08.2024 referredthe matter to the ACIT for imposition of penalty under section271E and the ACIT on 24.09.2024 recorded the satisfaction. It isargued that there is no requirement under section 271E forassessing officer (hereinafter ‘AO’) to record the satisfaction. Thecounsel is not able to distinguish the citation relied upon bycounsel for the petitioner. 6.The reassessment order was passed on 12.03.2024 and nosatisfaction was recorded for initiating the penalty proceedingsunder Section 271E. 7.The reliance on the reference made by the DCIT to ACIT on01.08.2024 shall not enhancecase of the department as thereference was after the conclusion of reassessment proceedingsby the DCIT. 8.The satisfaction dated 24.09.2024 recorded by the ACITcannot be equated with the satisfaction to be recorded in thereassessment proceedings by the concerned AO. 9.In Jai Laxmi Rice Mills(supra) the Supreme Court wasdealing with the issue as to whether the penalty proceedingsunder section 271D are independent of the assessmentproceedings. In that case, in the assessment order passed inpursuance to the remand no satisfaction was recorded forinitiating the proceedings under section 271E. Though the AOstated for initiation of proceedings under section 271(1)(c). Thepenalty proceeding was quashed on the ground that in absence ofsatisfaction recorded by the AO the penalty can not be imposed. 8.The satisfaction dated 24.09.2024 recorded by the ACITcannot be equated with the satisfaction to be recorded in thereassessment proceedings by the concerned AO. 9.In Jai Laxmi Rice Mills(supra) the Supreme Court wasdealing with the issue as to whether the penalty proceedingsunder section 271D are independent of the assessmentproceedings. In that case, in the assessment order passed inpursuance to the remand no satisfaction was recorded forinitiating the proceedings under section 271E. Though the AOstated for initiation of proceedings under section 271(1)(c). Thepenalty proceeding was quashed on the ground that in absence ofsatisfaction recorded by the AO the penalty can not be imposed. 11.In the case in hand the DCIT had only recorded satisfactionfor proceedings under Section 271(1)(c) of the Act of 1961 and nosatisfaction was recorded to initiate penalty proceedings underSection 271D. 12.The issue involved in the present writ petition is squarelycovered by the decision of the Supreme Court in Jai Laxmi RiceMills(supra). The notice issued under Section 271E and theproceedings in pursuance thereto are quashed. 13.The writ petitions are allowed. (SHUBHA MEHTA), J Himanshu Soni/30-32, 85, 92-107 (AVNEESH JHINGAN), J