TMI Blog2017 (5) TMI 1693X X X X Extracts X X X X X X X X Extracts X X X X ..... n the books of account by way of journal entries i.e. crediting the amount of party to whom monies payable and debiting the account of a party from whom monies are receivable in the books of account is in contravention of provisions of Section 269T of the Act but in that case also the penalty was held to be not leviable for the reason that transaction was bona fide and was not to evade taxes. In assessee s case also, the transaction is bonafide and it was not to evade taxes. No infirmity in the order of the ld. CIT (A) which is sustained on this issue. Thus the solitary ground of the Revenue is dismissed. - D.B. IT APPEAL No. 30/2017 - - - Dated:- 8-5-2017 - MR K. S. JHAVERI AND MR. G. R. MOOLCHANDANI, JJ. For The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 269SS of the Act. Therefore, I deem it a fit case for imposing of penalty u/s 271D of the Act. Accordingly, I hereby impose the following penalty upon the assessee:- Penalty u/s 271D of the Act for accepting loans/deposits aggregating to ₹ 82,56,589/- in violation of provisions of section 269SS as per details in para 9 above. ₹ 82,56,589/- I have gone through assessee s submission and AO s findings. In my opinion, section 269SS was introduced in the statute to prevent introduction of unaccounted money by showing cash loans etc. Section 269SS does not apply on journal entries passed in the books of accounts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... REQUIREMENT AS TO MODE OF [ACCEPTANCE, PAYMENT OR] REPAYMENT IN CERTAIN CASES TO COUNTERACT EVASION OF TAX [Mode of taking or accepting certain loans and deposits. 269SS. No person shall, after the 30th day of June, 1984, take or accept from any other person (hereafter in this section referred to as the depositor), any loan or deposit otherwise than by an account payee cheque or account payee bank draft if, - (a) the amount of such loan or deposit or the aggregate amount of such loan and deposit; or (b) on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the Banking Regulation Act, 1949 (10 of 1949), applies ad includes any bank or banking institution referred to in section 51 of that Act:] (ii) co-operative bank shall have the meaning assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949); (iii) loan or deposit means loan of deposit of money.] 5. Taking into consideration the observations made by the CIT(A) and the Tribunal, we are are of the considered opinion that Section 269SS of the Income Tax Act, was introduced in statute and taking into consideration the applicability of the provisions, the Tribunal has discussed in para 2.5 in detail which reads as under: A plain reading of section indicat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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