9911796707
TMI Blog2015 (7) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... tice none appeared on behalf of the assessee. However, a written submission has been filed on behalf of the assessee. Therefore, this appeal is being decided on the basis of written submission filed by the assessee and after hearing the Ld. Departmental Representative. 4. Facts of the case, in brief, are that the assessee is an individual and proprietor of M/s Jagdamba Agro Engineering, Jalna. A search action under section 132 of the I.T. Act was conducted in the case of Rudranee Group of cases of Aurangabad. On the basis of material found, a survey action under section 133A of the I.T. Act was conducted in the case of Shri Kachrulal Nathmal Mutha (K.N. Mutha) engaged in money lending activity. Shri K.N. Mutha has given cash loan on hundie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d then the cheque received as security would be revalidated for a period covering the tenure of debt by making a change in the date of issue of the cheque. If any invalidated cheque remained with Shri K.N. Mutha and the time period for presentation vis-à-vis the date mentioned on cheque expired, then it meant that the debtor had repaid the amount borrowed undated. Rejecting the explanation given by the assessee and observing that assessee had taken loan aggregating to Rs. 1,00,000/- in cash from Shri K.N. Mutha and since the cheque was not cancelled and the period of validity subsists the amount could not have been returned by the assessee to money lender Shri K.N. Mutha. He therefore levied penalty of Rs. 1,00,000/- under section 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rically stated that the assessee had approached Shri K.N. Mutha for seeking loan and for this purpose he had handed over a signed cheque. However, at that point of time the assessee was having existing loan liability of Chikli Urban Cooperative Bank to the tune of Rs. 16,00,000/-. Shri K.N. Mutha after discreet enquiries with the said bank and on having come to know of this fact refused to grant loan to the assessee. However, he did not return the same and the validity of the said cheque was over. Therefore, the assessee did not pursue the matter with Shri K.N. Mutha since the cheque became stale. It is stated in the written submission that the Revenue did not furnish any cogent direct evidence to substantiate that the assessee had in-fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative Bank Ltd. dated 06.08.2005 found from the premises of Shri K.N. Mutha during the course of survey action under section 133A of the I.T. Act on 02.02.2006. During the course of penalty proceedings, the assessee submitted that he has not obtained any such cash loan from Shri K.N. Mutha and that he had only given the signed cheque in anticipation of loan. However, no such loan was given by Shri K.N. Mutha since assessee had already obtained loan of Rs. 16,00,000/- from Chikhali Urban Cooperative Bank Ltd.. However, the above submission was rejected by the Addl. CIT who levied penalty of Rs. 1,00,000/- under section 271D of the I.T. Act, which has been upheld by the CIT(A). 11. We find identical issue had came up before the Tribunal in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id not accept the contention of the assessee on the ground that the same appears to be improbable for which the argument of the assessee was rejected. The other contention of the assessee that there is no entry either in the books of Shri Kachrulal Nathmal Mutha or in the books of the assessee was also rejected by the CIT(A). 7.1 In our opinion, for imposing penalty u/s.271D there must be some direct evidence to substantiate that the assessee has infact accepted cash loan in violation of the provisions of section 269SS. In the instant case, there is no direct evidence brought on record by the Revenue. The assessee was categorically denying of any such cash loan from Shri Kachrulal Nathmal Mutha. There is nothing on record to suggest that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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