Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s. Lumbini Constructions Ltd. Versus Addl. Commissioner of Income Tax, Range-16, Hyderabad

2017 (5) TMI 207 - ITAT HYDERABAD

Penalty proceedings u/s. 271D - assessee had received loans from various individual- Directors in cash in excess of the limits prescribed u/s. 269SS - Held that:- The company has accepted amounts from the directors and the explanations from the directors was considered in the assessment proceedings and accepted. There is truth in the contention of the assessee that on the same explanation given in the assessment proceeding, the penalty proceedings cannot be initiated. Further, assessee has given .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g financial difficulties. Further substantial amount was deposit in Bank Account directly. Explanation given was accepted in assessment proceedings, so the same can be considered as reasonable for accepting cash for the purpose of section 271D read with section 273B. - Thus it is of the view that the assessee has shown reasonable cause within the meaning of section 273B, therefore, the penalty order is to be set aside. - Decided in favour of assessee. - I.T.A. No. 1436/HYD/2016 - Dated:- 3-5 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

profits at ₹ 66,878/- u/s. 115JB of the Income Tax Act [Act]. The scrutiny assessment u/s. 143(3) of the Act was completed on 25-03-2015 by making an addition of ₹ 56,180/- towards disallowance u/s. 40(a)(ia) of the Act. During the course of assessment proceedings, the Assessing Officer (AO) observed that assessee had received loans from various individual- Directors in cash in excess of the limits prescribed u/s. 269SS. However, to verify the same, AO issued notice u/s. 271D of the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ers of the XIV Addl.GMM at Mayo Hall, Bangalore in CC No.26367/2011. The aforesaid amount of ₹ 11,25,000/- was directed deposited into the bank account of the company with Andhra Bank, Bangalore and a demand draf t was taken and paid to the creditor as per the directions' of the court. Thus it cannot be said the transaction is in the nature of a cash transaction contravening the provisions of section 269SS of the I.T.Act, 1961. Similarly an amount of ₹ 80,024/- was directly paid .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ature of transactions and the circumstances of the case when particularly the transactions are between the company inter-se and the directors as stated above. The AO failed to appreciate that the directors of the company have running current account with the company. On account of the fact that the financial status of the company was weak and the company was running in losses, the directors have brought in cash to tide over the temporary crisis created on account of shortage of funds. Details of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the director of the company. It denotes a person or persons who are not very intimately or closely connected to the appellant company. The financial position of the company was weak and the monies were brought in emergency situations to meet expenditure in the nature of salaries and other office expenses like paying for electricity bill, provident fund, telephones, conveyance etc. During the assessment proceedings, the AO had occasion to examine the books of accounts and examine all the amounts .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

page 290(Mag.), ITAT, Hyderabad in the case of Industrial Enterprises vs. DCIT, 73 ITO 252(Hyd.), ITAT Ahmedabad Bench in the case of Shrepak Enterprises vs. DCIT, etc . 4. Ld.CIT(A) after examining the facts, confirmed the penalty order by stating as under: 6. I have carefully considered the penalty order and submissions of the appellant. On perusal of the submissions it is found that the appellant has filed the same submissions which were filed before the Assessing Officer during the course o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessing Officer and the penalty levied confirmed. 5. Aggrieved by the order of Ld.CIT(A), assessee filed an appeal before the Hon'ble ITAT raising the following grounds: 1. The order of the Commissioner of Income-tax (Appeals)-4, Hyderabad CIT(A) in conf irming the levy of penalty imposed U/s.271-D at ₹ 18,95,024 is wholly unsustainable both on facts and in law. 2. The learned CIT (A) failed to note that the appellant was prevented by reasonable and sufficient cause in accepting the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gencies which fact was not disputed by either the Addl. CIT, Range-16, Hyderabad or the CIT(A) and therefore erred in sustaining the levy of penalty . 5. I have considered the rival contentions and perused the material available on record. As seen from the facts of the case, the company has accepted amounts from the directors and the explanations from the directors was considered in the assessment proceedings and accepted. There is truth in the contention of the assessee that on the same explana .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version