9911796707
TMI Blog2016 (9) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... by an order of the Income Tax Appellate Tribunal ("ITAT") dated 09.03.2016 dismissing its appeal. For the relevant assessment year, AY 2006-07, the Assessing Officer ("AO") had issued notice and brought to tax an amount of Rs. 4,80,71,518/- holding that it was repaid otherwise than by crossed cheque/bank draft, which is in violation of the provisions of Section 269T of the Act. The assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts Ltd. (2014) 367 ITR 433 (Delhi) and observed as follows:- "6. We have perused the orders passed by the authorities below and the paper book filed before us. It is observed that the ld. AO has not disputed the transactions, and has not observed any part of the amount to be unexplained money. It has nowhere been recorded in the penalty order that the transactions were undertaken with a view to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied penalty u/s 271E of the Act for alleged violation of provisions of section 269T of the Act only on the basis that the books of the assessee reflected the payment to APIL. Respectfully following the decision of Jurisdictional High Court in the case of CIT vs. World Wide Township Ltd. (supra), we hold that the provisions of section 269T were not attracted to the facts of the present case. We, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t with appropriate business targets in the commercial world. Undoubtedly Section 269T is meant to discourage cash transactions and has penal consequences - evident from Section 271E. Whilst, strict construction is the norm, at the same time, we are not persuaded that the interpretation in Worldwide Township in any manner deviated from the text of the Statute. For the above reasons, no question of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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