Penalty u/s 271D Imposed for Cash Transaction in Wrong AY: ITAT Directs AO to Delete Penalty

The ITAT (Income Tax Appellate Tribunal) directed the AO (Assessing Officer) to delete a "penalty under Section 271D" imposed for a "cash transaction in the wrong AY (Assessment Year)." Section 271D imposes a penalty for accepting or repaying certain loans or deposits in cash exceeding the prescribed limit. The tribunal found that the penalty was levied for a cash transaction that actually occurred in a different assessment year than the one for which the penalty was imposed. This procedural error rendered the penalty invalid.