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2015 (1) TMI 601 - AT - Income TaxPenalty levied under section 271E - penalty order challenged as barred by limitation - repayment of loan or advance in contravention of the provisions of section 271E - Held that:- In the absence of any date of reference by the AO to the JCIT for initiating action for imposing penalty under section 271E of the Act, the notice issued by the JCIT is to be taken as the date for initiation of action for imposing penalty under section 271E of the Act. On a reference of the Assessing Officer, the Joint Commissioner of Income-tax has to take a decision with regard to the imposition of penalty under section 271E of the Act and thereafter he has to issue a notice to the assessee to initiate proceedings for imposition of penalty under section 271E of the Act. It is also apparent from the penalty order that the Joint Commissioner of Income-tax has issued a notice under section 274 of the Act for imposing penalty under section 271E of the Act on 15.4.2011. Therefore, in the real sense action for imposing penalty was initiated by issuance of notice by the Joint Commissioner of Income-tax. If that date is taken, then the penalty order is passed within the period of limitation. - Decided against assessee. Cash Receipt in violation of section 269T - repayment of loan or advance in cash - Held that:- The provisions of section 269T of the Act were invoked on the basis of certain entries found on certain seized documents. Unless and until it is proved that the seized documents relate to the assessee-company, the repayment of loan or advance in cash to different parties cannot be held to be done in violation of the provisions of section 269T of the Act, for which penalty under section 271E of the Act can be invoked. Even the ld. CIT(A) does not deliberate on the issue and having made reference to various pronouncements on this aspect, he confirmed the penalty. Under the given facts and circumstances of the case, we find no merit in the penalty levied under section 271E of the Act. We accordingly set aside the order of the ld. CIT(A) and delete the penalty. - Decided in favour of assessee.
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