TMI Blog2011 (10) TMI 591X X X X Extracts X X X X X X X X Extracts X X X X ..... und raised in this appeal is in respect of cancellation of penalty of ₹ 16,05,040/- levied under section 271E. 2. Brief facts of the case are that during the assessment proceedings the AO noticed that certain deposits were repaid in cash exceeding ₹ 20,000/- otherwise than by account payee cheque or band draft totaling to amount of ₹ 16,05,040/-. The AO was of the view that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal in the case of Sunflower Builders (P) Ltd. vs. DCIT in ITA No.623/Pn/1995 . 3. We have heard the ld. representatives of the parties. Section 269T is applicable in the case where the assessee repays any loan or deposit otherwise than by account payee cheque or account payee bank draft. Explanation to section 269T defines the loan or deposit . The loan or deposit means any loan or deposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished copies of account and confirmations from the parties which have been placed at pages 162 to 189 of the Paper Book. In the confirmations the concerned parties clearly confirmed that the amount was refunded on cancellation of booking of flats etc. which were given as advance in earlier years. Receiving advance and repayment of advances is a business transaction and such transaction is not cove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit of money which is repaid after notice or repayable after a period. Therefore, the contention of the ld. DR is not acceptable in the light of CBDT Circular (supra) and above discussion. 3.3 Even otherwise for the sake of argument if there is a repayment of cash, it cannot be said to attract the levy of penalty automatically under section 271E of the Act. Section 273B states that penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
