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2019 (3) TMI 1259 - AT - Income TaxLevy of penalty u/s 271D - violation of the mandate u/s 269SS - Advances received from customers for transfer of immovable property - advances to promoter for day to day expenditure - advances received by the assessee were found to be genuine in such assessment - amendment by Finance Act, 2015 in Section 269SS w.e.f. 01.06.2015 - HELD THAT:- Advances or other receipts of money in relation of transfer of immovable property, whether or not such transfer took place, came within the ambit of Section 269SS only w.e.f. 01.6.2015. Thus in our opinion receipts of cash by the assessee as advance against sale of flats were not covered u/s.269SS for the impugned assessment year. Coming to the second part of the cash receipts received from the promoters of the assessee company, explanation given by the assessee was never found to be incorrect. Nothing has been brought on record by the Revenue to show that the receipts were superfluous in nature and not for the business of the assessee. Had it been so, it would have come out in the scrutiny assessment done for the impugned assessment year. Admittedly, there were no adverse findings in such scrutiny. Hon’ble Jurisdictional High Court in the case of Idyayam Publications Ltd [2006 (1) TMI 97 - MADRAS HIGH COURT] has clearly held that cash transactions in the current account of a company with its promoters, where such current account was a running one, could not be considered as loan or advances. There is no case for the Revenue that assessee had not produced ledger before AO during the course of assessment proceedings or that the accounts of the promoters in the books of the assessee were not in the nature of funds introduced for the running of its business. Hence we are of the opinion that advances received from the promoters in cash through their respective current accounts could not be considered as loan or advances coming within the ambit of Section 269SS of the Act. - Decided in favour of assessee.
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