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2014 (1) TMI 1874 - HC - Income TaxPenalty u/s 271D - whether transactions through journal entry do not attract the provisions of Section 269SS ? - ITAT deleted penalty - HELD THAT:- We have read the reasoning rendered in the previous judgment [2013 (7) TMI 952 - ITAT HYDERABAD] . It appears that the assessee challenged the penalty proceedings initiated under Section 271D of the Income Tax Act, 1961 on the ground of illegal borrowings in contravention of Section 269SS of the Act. The learned Tribunal on an earlier occasion found that there is no proof of receipt of such loan from the records and they were only found to be journal entries. The learned Tribunal, in our view, correctly observed that relying on an entry in the journal, no penalty proceedings can be initiated. Hence, it was sent for clarification whether actual flow of money did take place. Therefore, the matter was remanded and no decision was taken on merit. We find that the learned Tribunal has correctly decided the same
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