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2019 (7) TMI 1586 - AT - Income TaxPenalty u/s.271D - addition of interest payment u/s. 69C - HELD THAT:- Addition of interest payment u/s.69C was made on account of documents seized from third party which were reflected some cash loans transactions i.e. receipts and payments. However, these documents were not found from the possession of the assessee. Therefore, presumption u/s.132 (4A) as well as u/s.292C is not available in the case of the assessee The statement on which the AO has based his findings has not been found to be acceptable due to changing stand of the parties concern which are also third party. Further, the transactions were not found to be true as these were not deciphered by the persons from whose possession these were recovered. Therefore, the charge of the AO that loans were rightly taken and repaid in cash has not been established. CIT(A) has given this clear-cut findings in quantum appeal in the case of assessee against which the appeal is also dismissed at the level of ITAT. Hence, ld.CIT(A)’s order has attained finality in the quantum proceedings. Therefore, just because the assessee has business relations with a persons (not even the person from whom the documents were recovered) nor it is proved that unsubstantiated entry found recorded in the similar name is true and belongs to the assessee. We are therefore inclined to agree with the findings recorded by the ld.CIT(A) in penalty proceedings that no corroborative or substantive evidence has been brought on record to suggest that the assessee has taken any loan in cash or repaid any loan in cash and done the transactions reflected in the seized material recovered from third party - no reason to deviate from findings recorded by the ld.CIT(A). Accordingly the appeal of the Revenue in respect of penalty u/s.271D and 271E is dismissed. - Decided in favour of assessee.
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