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2016 (1) TMI 1480 - AT - Income TaxPenalty u/s 271D/271E - violation of the provisions of section 269SS/269T - receipts and repayments in cash of transactions other than loans/deposits - HELD THAT:- As observed from the impugned order that the assessee categorically stated that it had been purchasing and selling the goods and materials from/to M/s Hindustan Plywood Company and the amounts in question were on account of trading transactions - As perused account of M/s Hindustan Plywood Company, a copy of which has been placed on record. Its perusal indicates that it is a running account in which there are purchase and sale transactions on different dates including 2.4.2007, 24.4.2007, 13.7.2007, 16.7.2007 and 27.11.2007 etc. Apart from that, there are other receipts and payments in cash and by cheques as well. If we look at the totality of the account, it becomes clear that the same is in the nature of current account and does not primarily represent any acceptance or repayment of loans and deposits otherwise than by way of cash as contemplated u/s 269SS/269T - It goes without saying that no penalty can be imposed u/s 271D/271E in respect of receipts and repayments in cash of transactions other than loans/deposits. Under such circumstances, we set aside the impugned order and direct the deletion of the penalty. Appeal of the assessee is allowed.
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