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2021 (11) TMI 346 - AT - Income TaxPenalty u/s 271E - violation of the provisions of section 269T - amount of loan was reduced by way of passing the journal entry - immunity under provisions of section 273B - HELD THAT:- As there appears no dispute with respect to the accounting entries made by the assessee in the accounts which has reduced the loan liability by ₹25 lakhs stood in the name of Shri Milap Jadeja. However, we find that the genuineness of the transaction was not accepted by the learned CIT (A) - CIT (A) held that there was no documentary evidence filed by the assessee justifying that the assessee has purchased any piece of land. On the strength of the principles laid down in the case of CIT vs. Bombay Conductors & Electricals Ltd [2008 (2) TMI 114 - GUJARAT HIGH COURT] the assessee cannot be given the immunity from the penalty provisions as specified under provisions of section 271E of the Act. It is for the reason that the genuineness of the transaction has not been proved by the assessee by filing the necessary details in establishing the fact that the adjustment entry was made by the assessee for the purchase of the land. In the absence of, the necessary details we are not able to persuade ourselves with the contention of the learned AR for the assessee. Entries were duly reflected by the assessee in accounts of the parties involved in the impugned transaction of loan and purchase of the land. In our considered view, the genuineness of the transactions for the purchase of land cannot be proved without filing the necessary details. However, in the interest of justice and fair play, we are inclined to give one more opportunity to the assessee to prove the genuineness of the transaction. If it is proved, there will not be any penalty under the provisions of section 271E of the Act. Accordingly, we are setting aside the issue on hand the file of the AO for fresh adjudication as per the provisions of law. Hence the ground of appeal of the assessee is allowed for the statistical purposes.
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