TMI Blog2015 (2) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... JJ. For the Appellant : Shri R.B. Mathur CA For the Respondent : Shri Robin Rahul Sr. DR ORDER PER S.V. MEHROTRA, A.M:- This appeal, preferred by the assessee, is directed against the order dated 11-10-2012, passed by the CIT(Appeals)-X, New Delhi in appeal no. 235/09-10, sustaining the penalty of ₹ 2,22,197/- levied by the AO u/s 271D of the I.T. Act, 1961, relating to A.Y. 2002-03. 2. The assessee company in the relevant assessment year carried on manufacturing of bricks and SW pipes. It had filed its return of income declaring loss of ₹ 2,87,978/-. The assessment was completed at a total income of ₹ 23,33,502/-, inter alia, making addition of ₹ 2,72,917/- on account of unexplained un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to bank. The payment to bank was made on 7-12-2001 and 8-12-2001. Thus, the main plea of assessee was that on account of urgency of circumstances, the loan was taken in cash. The AO examined the cash balance in the books of account on the dates when alleged loan from the above persons was taken and concluded that there was no urgency for entering into cash transaction. Ld. CIT(A) dismissed the assessee s appeal. 3. Ld. counsel for the assessee submitted that he has taken following additional ground of appeal: That on the facts and the circumstances of the case the order u/s 271D passed by the Ld. Additional Commissioner of Income Tax, Range-2 was barred by limitation and thus bad in law. The limitation for the purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... / shareholders/ employees. He submitted that it was under these exigencies that the loan was taken in cash. In this regard he referred to page 2 of the PB, wherein the bank account of SBI is contained. He further referred to page 3 of the PB, wherein the compromise settlement under one time settlement dated 9-12-2000 is contained, wherein, inter alia, following two terms of settlement are mentioned: (i) 25% of the settled amount (i.e. of ₹ 35.00 lacs) will be deposited immediately in the account. (ii) The remaining amount of ₹ 26.25 lacs (Rs. Twenty six lacs and twenty five thousand only) will be deposited by you within 12 months from the date of settlement i.e. from 9-12-200. 5.2. Ld. counsel also referred to page 1 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10000.00 28.8.2001 10000.00 11.9.2001 10000.00 31197.00 5. Gyan Prakash 28.5.2001 10000.00 2.9.2001 10000.00 20000.00 6. Manbir Dagar 5.9.2001 10000.00 7.9.2001 10000.00 10.9.2001 5000.00 25000.00 7. Ani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that the assessee has established the identity of the creditors and the genuineness of the transactions resulting in the receipt of loans from those creditors. The creditworthiness in the context of the individual creditors has been established with reference to identified sources of income in each case and thereafter deleted the addition u/s 68 of the amounts obtained as loans from Directors share holders and others. The finding recorded by CIT(A) remained uncontroverted, we therefore, do not find any reason to interfere in the order of CIT(A) deleting the addition of ₹ 2,72,917/- and the ground of appeal taken by the revenue is rejected. 6.1. Admittedly the assessee had discharged its liability towards bank by entering into o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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