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2012 (10) TMI 656 - AT - Income TaxLoan or deposit have been defined in section 269T to mean any loan or deposit of money which is repayable after notice or repayable after a period and, in case of person other than a company, includes loan or deposit of any nature - The latter part of the definition is not applicable in the case of the assessee as it is a company. Penalty u/s 271D / Penalty u/s 271E - assessee received deposits from D.D. Township (P) Ltd. otherwise than by way of account payee cheque or draft - DD made payments on behalf of the assessee for purchasing land from the farmers – Held that:- Credit has been given for purchase of lands - lands were purchased in the course of business of developing them in association with the DD - transactions are in the nature of business transactions, recorded through the current account. The DD was subsequently paid through this account - it is not a case of accepting loan or deposit - assessee had tendered explanation in regard to transactions, the circumstances in which payments were made in cash by Shri J.P. Khanna, and such explanation ought to have been taken as a bona fide explanation. The transaction is also not one of loan or deposit - CIT(Appeals) was right in deleting the penalty. Orders of lower authorities no where show that the money was repayable after notice or after a period of time. This is an additional factor in favour of the assessee - levy of penalty u/s 271D, rightly deleted
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