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TMI Blog2018 (5) TMI 1731X X X X Extracts X X X X X X X X Extracts X X X X ..... y imposed by the Assessing Officer under Sections 271E and 271D of the Income Tax Act, 1961 (hereinafter referred to as the IT Act ). 2. The facts giving rise to these appeals are very briefly enumerated hereinafter. 3. It appears that a survey under Section 133A of the IT Act was conducted in the case of Mr.A.Kannan, Proprietor, Vadamalayan Finance, No.C-4, II Floor, Thiyagaraja Apartment, First Main Road, Thanthai Periyar Nagar, Pondicherry 605 005, on 8.9.2011 and books of accounts and supporting documents were impounded under Section 133A(3) of the IT Act. 4. The survey revealed that the said A.Kannan carried on business of lending, even though he had no licence to do so. From the records maintained by the said A.Kannan, it was notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore: Provided that the provisions of this section shall not apply to any loan or deposit or specified sum taken or accepted from, or any loan or deposit or specified sum taken or accepted by, (a) the Government; (b) any banking company, post office savings bank or co-operative bank; (c) any corporation established by a Central, State or Provincial Act; (d) any Government company as defined in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013); (e) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette: Provided further that the provisions of this section sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... posit or specified advance together with the interest, if any, payable thereon, or (b) the aggregate amount of the loans or deposits held by such person with the branch of the banking company or co-operative bank or, as the case may be, the other company or co-operative society or the firm, or other person either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such loans or deposits, or (c) the aggregate amount of the specified advances received by such person either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such specified advances, is twenty thousand rupees or more: Provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of advance, by whatever name called, in relation to transfer of an immovable property, whether or not the transfer takes place. Section 271D. Penalty for failure to comply with the provisions of section 269SS. (1) If a person takes or accepts any loan or deposit or specified sum in contravention of the provisions of section 269SS, he shall be liable to pay, by way of penalty, a sum equal to the amount of the loan or deposit or specified sum so taken or accepted. (2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner. Section 271E. Penalty for failure to comply with the provisions of section 269T. (1) If a person repays any loan or deposit or specified advance referred to in section 269T other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 2008-2009, and also levied penalty under Section 271D of the IT Act to the extent of Rs. 20,00,000/- in relation to the assessment year 2012-2013. 10. Being aggrieved by the orders imposing penalty, the assessee filed appeals, being I.T.A.No.1502/13-14 and I.TA.No.1503/13-14, before the Commissioner of Income Tax (Appeals)-VI, Chennai, who allowed the appeals and deleted the penalty levied by the Assessing Officer by two several orders, both dated 14.11.2014. 11. The Appellate Tribunal, by the order impugned before us, as observed above, allowed the appeals and restored the penalty under Sections 271E and 271D of the IT Act, observing as under: "9. In this case, there is no justifiable reasonable cause for repayment of loans in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e orders of other Benches of coordinate strength of the learned Tribunal. 13. However, in our considered opinion, every assessment year is different and a factual finding pertaining to any one assessment does not operate as a binding precedent in respect of subsequent assessment years. The orders of other Benches of coordinate strength of the learned Tribunal pertaining to other assessment years and/or to other assessees would not operate as a precedent. 14. In this context, it would perhaps not be out of context to note that statutory provisions which prohibit acceptance of repayment of loans in cash are binding on all Income Tax payees and breach thereof attracts the penal provisions of the IT Act, and renders an assessee taking or repa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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