Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (11) TMI 494 - ITAT, DELHIPenalty u/s 271D - amounts provided by Natco and Ajay Grover by way of bearer demand draft and cash on behalf of the assessee, as a consequence of which the assessee became debtor to these persons - amount provided by Natco has been assessed as dividend u/s 2(22)(e) by the AO - Held that:- In absence of any agreement between the assessee on one hand and Natco or Ajay Grover on the other, indebtedness in the form of loan arises. Also, carrying of the transactions indirectly does not make any difference because if it had been carried on directly, it would have amounted to acceptance of loans. It is also a fact that the transactions have been disclosed by the assessee. The lower authorities have not given any finding in the matter of recording of the transactions by any of the creditors or the parties to whom the amounts were paid. In these circumstances, it can be said that the transactions are genuine as far as the assessee is concerned. There is sufficient cause shown for non-levy of penalty - Decided in favor of assessee
|