Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 987 - AT - Income TaxPenalty u/s 271D - violation of provisions of section 269SS - CIT(A) deleted penalty levy - Held that:- The CIT(A) has clearly recorded the finding that there was the business transaction between the assessee firm and M/s Rups Craft Inc. and all the transactions with the said party were business transactions only and there was no transaction of loan or deposit. It was also observed that in fact there was no cash payment. On the other hand, the payment of ₹ 15,45,000/- was made by account payee cheque No.57308 to M/s Rups Craft Inc. by Shri Inderpal Singh Wadhawan, partner of the firm and consequently, the entry was passed in the assessee’s books of account. Therefore, there was no cash transaction. Both these findings recorded by the CIT(A) remained uncontroverted before us. We, therefore, find no justification to interfere with the order of learned CIT(A) in this regard. The same is sustained and the appeal of the Revenue is dismissed. - Decided in favour of assessee. Penalty u/s 271E - violation of provisions of section 269T - CIT(A) deleted penalty as partner and partnership firm is one and the same person in the eyes of law and provision of section 269T are not applicable on the transaction entered by the partner with the firm - Held that:- All the payments were made by M/s Vardaan Fashion, a partnership firm in which assessee is a partner. All the payments were made by account payee cheque and in the assessee’s books of account, there was only a journal entry (book entry), thus, the provisions of Section 269SS/269T cannot be said to have been violated. The factual finding recorded by the CIT(A) that the payment was for share application money has not been controverted by the Revenue before us. Therefore, the same is accepted and we have no hesitation in holding that payment for allotment of shares as share application money cannot be said to be repayment of loan or advance so as to violate provisions of Section 269T. - Decided in favour of assessee. Penalty u/s 271D - violation of provisions of section 269SS - Held that:- The acceptance of the cash by the husband from his wife cannot be said to be taking of the loan or advance in strict sense of Section 269SS. We, therefore, find no infirmity in the order of learned CIT(A) wherein he cancelled the penalty levied under Section 271D for the acceptance of cash by the assessee from his wife. We, therefore, uphold the order of learned CIT(A) and dismiss the appeal filed by the Revenue. - Decided in favour of assessee.
|