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2014 (6) TMI 47 - HC - Income TaxValidity of order of Penalty u/s 271D of the Act – Bar of limitation as provided in Section 275(1)(c) of the Act – Violation of section 269SS of the Act - Held that:- The ambit of the Section 269SS is clearly restricted to transaction involving acceptance of money and not intended to affect cases where a debt or a liability arises on account of book entries. - passing book entries does not involve acceptance of any loan or deposit of money. Applicability of provisions of section 275(1) - Held that:- The penalty sought to be imposed on the assessee is for alleged violation of Section 269SS of the Act - a penalty under the provision is independent of the assessment - The action inviting imposition of penalty is granting of loans above the prescribed limit otherwise than through banking channels and as such infringement of Section 269SS of the Act is not related to the income that may be assessed or finally adjudicated - Section 275(1)(a) of the Act would not be applicable and the provisions of Section 275(1)(c) would be attracted – Relying upon The Rajasthan High Court in the case of Commissioner of Income-Tax v. Hissaria Bros. [2006 (7) TMI 163 - RAJASTHAN High Court] - Decided against Revenue.
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