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2014 (11) TMI 474 - AT - Income TaxTransaction covered u/s 269T/271E or not – Bonafide of transaction – Contravention of section 2699SS/T or not - Held that:- There cannot be any justification in making repayments in cash when at the same time the assessee had received payments through transfer entries from the same party - The argument of the assessee that cash was paid after making adjustment of sales made to assessee is also not correct as the sales were made at the closing of month of December whereas the cash payments were made in the month of November - repayments in contravention of provisions of section 269T are ₹ 10,80,000 - All these payments were made in Ghaziabad as the assessee is based in Ghaziabad whereas the Bank of the firm M/s Premsons Forging Pvt. Ltd. is situated at Kanpur - It is not understandable as to how these payments were carried from Ghaziabad to Kanpur and that too on many days in the month whereas the facility of online deposit in third party bank account was also available - The classification by assessee in his balance sheet cannot alter the nature of transaction which necessarily was a loan or deposit and even if the amount is considered deposit then deposit includes advance against goods - There was no reasonable cause in making cash payments as the repayments made in Ghaziabad has been claimed to have been deposited in Kanpur which is beyond human probabilities specifically keeping in view of the fact that during the period of repayments in cash the assessee received from same party through journal entries huge amounts – the order of the CIT(A) is upheld – Decided against assessee.
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