Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 131 - AT - Income TaxPenalty u/s 271D/271E - contravention of provisions of sections 269SS/ST - taking or accepting loans otherwise than account payee cheques - book adjustments through journal entries between cross parties - CIT-A deleted the addition on reasonable cause u/s 273B for entering on transaction to transaction basis - Whether CIT(A) is justified in holding that the journal entries should enjoy equal immunity on par with account payee cheques and bank drafts? - HELD THAT:- As given a thoughtful consideration and are of the considered view that the issue involved in the present appeal pertains to levy of penalty u/s 271E of the Act as regards the assignment of receivables or extinguishment of mutual liability of paying/receiving the amounts by the assessee and its sister concerns AND rectification of an error. We, thus, going by the reasoning adopted by us for vacating the penalty u/s 271D of the Act, on the same footing uphold the order of the CIT(A) who had rightly set-aside the impugned penalty imposed by the Addl. CIT, for the reason, that the same is simpliciter an assignment of receivables or extinguishment of mutual liability of paying/receiving the amounts by the assessee and its sister concerns AND rectification of an error. Accordingly, finding no infirmity in the view taken by the CIT(A), we uphold his order. - Decided in favour of assessee.
|