Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 1535 - AT - Income TaxPenalty u/s 271D - default u/s 269SS - Taking or accepting of loan/ deposits of ₹ 20,000/- or more by way of mode of payment other than account payee cheque / draft - HELD THAT:- Section 271D applies to a transaction where a deposit or loan money is accepted by an assessee otherwise than by an account payee cheque or an account payee draft. This is also explicit from clause (iii) of the explanation to Section 269SS of the Act which defines ‘’loan or deposit of money. Although in the case of cut vs. Triumph International Finance (I) Ltd. [2012 (6) TMI 358 - BOMBAY HIGH COURT] it is held that the liability recorded in the books of account by way of journal entries i.e. crediting the amount of party to whom monies payable and debiting the account of a party from whom monies are receivable in the books of account is in contravention of provisions of Section 269T of the Act but in that case also the penalty was held to be not leviable for the reason that transaction was bona fide and was not to evade taxes. In assessee's case also, the transaction is bonafide and it was not to evade taxes. In this view of the matter and further perusing the citations of the case laws we find no infirmity in the order of the ld. CIT(A) which is sustained on this issue. Thus the solitary ground of the Revenue is dismissed.
|