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2021 (5) TMI 176 - AT - Income TaxPenalty invoking the provisions of section 271D - Managing Director of the assessee company had extended cash to the company - loan or deposits u/s 269SS - reasonable cause for having received cash loans from its Managing Director and granting relief to the assessee as per provision 273B - HELD THAT:- From the facts of the case, it appears that the assessee company has received cash from its Managing Director for meeting its day-to-day emergency expenses. In this situation, the decision relied by the assessee will be relevant and the assessee Company shall be entitled to relief as per the provisions of section 273B - From the order of the Ld. CIT (A) it appears that the assessee was not able to explain the genuineness of the source of funds obtained from its Managing Director. In the interest of justice, we hereby remit the matter back to the file of the Ld. AO to examine that no unexplained funds are introduced in the business of the assessee Company as loan from the Managing Director and if it found that the source of fund obtained from the Managing Director of the assessee Company is explained then delete the penalty levied invoking the provisions of section 271D of the Act. If found otherwise, the Ld. AO shall pass appropriate order in accordance with law and merit. Appeal of the assessee is allowed for statistical purposes
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