TMI Blog2016 (8) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... question referred to us is required to be answered in favour of the assessee and against the revenue. The appeal is dismissed accordingly. We answer the question in favour of the assessee and against the revenue. - TAX APPEAL No. 1727 of 2008 - - - Dated:- 21-7-2016 - KS JHAVERI And G. R. UDHWANI, JJ. COMMISSIONER OF INCOME TAX Versus M/S PANCHSHEEL OWNERS ASSOCIATIONS MR SUDHIR M MEHTA, SENIOR STANDING COUNSEL for the Appellant JUDGMENT ( Per : Honourable Mr. Justice KS Jhaveri ) By way of this appeal under section 260A of the Income-tax Act, 1961, the appellant-revenue has challenged the order of the Income-tax Appellate Tribunal (hereinafter referred to as the Tribunal ) whereby the Tribunal has dismissed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the penalty, in paragraph Nos. 7 and 8 of his order, has observed as under: 7. I have considered the submissions made on behalf of the appellant and have carefully perused the order of the Additional CIT imposing the penalty. There is no doubt about the fact that Smt. Shantaben was the main promoter of the AOP along with her husband and the sum of ₹ 40.00 lacs was their contribution for acquisition of the land at Valsad for the business purposes of the AOP. Smt. Shantaben had borrowed the funds from Pari Laxminarayan Tulsidas, HUF and South Indian Bank Ltd., through, account payee cheques. These two credits have not been doubted by the Assessing Officer and the Addl. CIT and no addition appears to have been made on this ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant has filed before me a letter from a Bank which suggests that clearing of draft from one station to another station takes about 3 days. It was a case, of ₹ 40 lacs, therefore, the clearing Bank would have tried to seek confirmation from the draft isuing bank and such process would have taken more time. From the facts brought on record, I find that the appellant was in a hurry to make the payment to the farmers in order to acquire the property and it was done by bringing cash and paying the same to the farmers and getting the documents executed from, the farmers in favour of the AOP on 25.2.1993. There was a possibility, if the appellant had, not acted, urgently, some other party would have got the opportunity to acquire the land ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n doubted. It has not been disputed in material terms by AO that but for the cash loan; assessee would not have been in a position to purchase the land from farmers, which was essentially for the AOP and its members. Facts about the payment to various farmers and in turn their payment to GHB for regranting of land and conveyance in favour of the assessee has not been disputed. These facts clearly indicate the importance and urgency of the situation; land deal would have been defeated without cash payments. It was contended that the assessee had reasonable cause in accepting cash loans, reliance was placed on - i) Shreenathhji Corporation Vs. ACIT, 58 TTJ 0611 ii) Karnataka Ginning Pressing Factory Vs. JCIT, 77 ITD 478 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he members of the AOP are not based at Valsad. In that view of the matter, the order of the Tribunal is bad in law. 6. We have heard learned counsel for the revenue. We have perused the orders of the Commissioner (Appeals) as well as the Tribunal. In this case the transaction was found to be genuine. The Assessing Officer has not doubted the transaction. In that view of the matter, both the Commissioner (Appeals) and the Tribunal have rightly deleted the penalty. We do not find any infirmity in the orders passed by the Tribunal. We are, therefore, of the opinion, that the question referred to us is required to be answered in favour of the assessee and against the revenue. The appeal is dismissed accordingly. We answer the question in fav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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