TMI Blog2011 (9) TMI 794X X X X Extracts X X X X X X X X Extracts X X X X ..... s before the Commissioner of Income-tax (Appeals) it is admitted that it is only a technical error or a mere breach and therefore there is a clear admission - Held that: the purpose for which the said amount was received is also clear from the material on record and therefore there is nothing to indicate that this amount is paid as loan or deposit - Decided in favor of the assessee - IT APPEAL NO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 94758,272. However the assessee has received a sum of Rs. 8,15,600 in excess of amounts due to them. The said amount has been received in cash. It is that amount which is described by the Revenue as a loan and it is contrary to section 269SS of the Act and they have initiated proceedings and levied penalty. Aggrieved by the said order, the assessee preferred an appeal to the Commissioner of Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is only a technical error or a mere breach and therefore there is a clear admission. A breach could happen only when the assessee has acted contrary to section 269SS and therefore the finding of the assessing authority that the said amount represents a loan is valid and legal and the Tribunal was in error in interfering with the said order. 4. Per contra, the learned counsel for the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial on record discloses that the assessee has no other customer except M/s. Namasthe Exports Ltd. The total turnover between the parties is Rs. 94,58,272, out of which Rs. 68,15,600 represents the cash component. The said amount is not paid in one instalment, it has been paid in several instalments which are less than Rs. 20,000. It is also on record that the assessee is running under loss. To k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the assessee is undergoing a financial difficulty, if M/s. Namasthe Exports Ltd., has extended the benefit to its sister concerned to tide over the situation, it cannot be construed as a loan as held by the assessing authority. Therefore the Tribunal was justified in setting aside the impugned order as well as the setting aside the penalty imposed for the alleged contravention of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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