TMI Blog2013 (7) TMI 1017X X X X Extracts X X X X X X X X Extracts X X X X ..... t come within the purview of section 269SS is unacceptable. 2. Briefly the facts, emanating from the record are that in the course of assessment proceeding the Assessing Officer noticing that the assessee had received cash loan of ₹ 22,29,160/- from M/s. Lahari Green Park during the financial year relevant to the A.Y. in dispute treated the same as unexplained income of the assessee under section 68 of the Act. The CIT(A), however, deleted the addition made under section 68 of the Act by observing that as per the receipts and payments statement filed by the assessee, cash loan was taken by the assessee from M/s. Lahari Green Park. On the basis of the above said facts, the Assessing Officer being of the opinion that there is cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere only journal entries to that effect. The finding of the CIT(A) in this regard is extracted hereunder : 6. I have gone through the facts of the case and the submissions of the appellant. The issue of penalty u/s. 271D levied in the A.Y. 2005-06 has been decided by the Hon ble Income Tax Appellate Tribunal, Hyderabad in their order dated 9.11.2012 in ITA.No.1135/Hyd/2012. It is seen that under similar facts, the Hon ble Income Tax Appellate Tribunal, after examination of the decisions cited by the Authorised Representative of the appellant have remitted the matter back to the file of the Assessing Officer to verify the fact whether the appellant had actually received cash loan from M/s. Lahari Green Park or there were mere journal en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder : 9. We have heard rival submissions and perused the materials on record. We have also examined the decisions relied upon by the learned Authorised Representative for the assessee. The only issue to be decided in the present appeal is as to whether the assessee has accepted cash loan from M/s. Lahari Green Park, in contravention of S.269SS of the Act, so as to invite the rigour of the penal provision of S.271D of the Act. It is the case of the Department that the assessee has accepted cash loan in contravention of the provisions under S.269SS, whereas the assessee s consistent stand has been that there was no cash loan, and whatever has happened was only by way of journal entries in the books of the firm in respect of the transact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orically held that no penalty under section 271D can be imposed on mere journal entries in the absence of actual loan received in cash in violation of 269SS of the Act. The CIT(A) following the aforesaid ratio laid down by the coordinate Bench of the Tribunal, has directed the Assessing Officer to verify this fact and delete the penalty if it is found that no actual cash loan was received by the assessee and they were merely journal entries. We do not find any infirmity in the aforesaid direction of the CIT(A) which is in terms with the ratio laid down by the ITAT, Hyderabad Bench. In aforesaid view of the matter, we uphold the Order of the CIT(A) and dismiss the grounds raised by the department. 5. In the result, appeal of the departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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