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2024 (2) TMI 788 - ITAT SURATPenalty u/s 271-D and 271-E - accepting loan in cash from the director of the company - default u/s 269SS - details of loans accepted have also not been recorded in audit report of the assessee-company for the year under consideration - HELD THAT:- From the above judgment in the case of Thamira Green Farm (P.) Ltd [2023 (10) TMI 839 - ITAT CHENNAI] it is vivid that transaction done during the business exigency does not attract the penalty under section 271D of the Act. We note that in the assessee`s case under consideration the transactions between Directors and assessee-company are on account of business exigency. Besides, assessee-company and the director both have disclosed transactions in their respective books of accounts for the relevant previous year. In the assessee`s case, it was not a case of loan taken/given from/to public, but amount received/paid to director to meet the business exigencies. Therefore, delete the penalty under section 271D. Levying penalty u/s 271E - assessee-company has repaid loan during the year on various dates to two Company`s Directors, and these amounts paid being more than Rs. 20,000/- - HELD THAT:- As there is an issue of acceptance of loan accepted, issue of repayment of loan on same set of facts and circumstances, hence it does not require separate adjudication.
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