TMI Blog2010 (7) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... . The factual findings rendered by the CIT(A) to the effect that such transactions were made by the assessee with a view to save its existence and mainly incurred for the purpose of disbursement of salary to the employees cannot be disturbed in the absence of any contra material evidence placed before this court - See CIT v. Kundrathur and Chit Co. [2006 (1) TMI 79 - MADRAS HIGH COURT] - in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etails to justify any reasonable cause under section 273B of the Income-tax Act or a case of exigency or urgency was made out. On that basis, he levied penalty under sections 271D and 271E of the Income-tax Act to the tune of Rs. 52,80,000 and Rs. 44,60,000 respectively. When the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) a remand report was called for by the firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing authority. 3. The Tribunal in the appeal preferred by the Revenue also examined the issue and noted that the transactions were in the nature of loans or deposits in the course of business of the assessee and such transactions were under-taken in current accounts between sister concerns. It also held that those transactions were undertaken out of business exigency and there was no sco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee with a view to save its existence and mainly incurred for the purpose of disbursement of salary to the employees cannot be disturbed in the absence of any contra material evidence placed before this court. If the said finding of the Com-missioner of Income-tax (Appeals), cannot be disturbed, it will have to be held that there were reasonable cause and that there were also exigen-cies, whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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