TMI Blog2008 (9) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the course of assessment proceedings it was found by the Assessing Officer that the assessee-company received Rs. 25.28 lakhs towards share application money from Mr. BSRK Prasad, CEO of the company which include Rs. 16.61 lakhs received from his USA account and the balance of Rs. 8.37 lakhs met by him towards the expenditure of the company in USA and later on converted the said amount into share application money. The Assessing Officer did not accept the assessee's explanation that the amount of Rs. 16,60,500 was transferred from a bank situated in the United States to the company's bank account in India. According to the Assessing Officer the assessee-company has violated the provisions of section 269SS transferring the money by someb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the relevant provisions of the Negotiable Instruments Act, 1881, to show that the cheque includes the electronic image of truncated cheque also relied on the relevant amendment made under sections 40A and 36 of the Act to contend that the payment can be made by a cheque. In the light of the above, he submits that since the transfer of foreign currency remittance was made in the form of telegraphic transfer (TT) as per the approved foreign exchange transactions, therefore, the amount received by the assessee-company into its current account with Global Trust Bank is not a cash transaction and hence the penalty imposed by the Assessing Officer and sustained by the learned Commissioner of Income-tax (Appeals) be deleted. He further submits th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income-tax (Appeals) while observing that in a case of foreign remittance, it is difficult for the Assessing Officer to enquire into the sources of remittance and in holding that the possibility cannot be ruled out, upheld the penalty to the extent of Rs. 16,60,500. However, at the time of hearing, learned counsel for the assessee made a statement that the Assessing Officer has accepted the genuineness of the above transaction and has not made any such addition in the assessment of the company. We further find that the Assessing Officer has not doubted the transfer of fund, i.e., foreign inward remittance Rs. 16.61 lakhs from the USA into the company's current account with the Global Trust Bank. Since the assessee-company stat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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