TMI Blog2020 (3) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent by : Shri Dhrubajyoti Roy, JCIT ORDER Per Dr. A.L. Saini, AM The captioned appeal filed by the assessee, pertaining to assessment year 2011-12, is directed against the order passed by the Commissioner of Income Tax (Appeal)-25, Kolkata, in appeal no. 243/CIT(A)-25/Kol/2018-19, which in turn arises out of a penalty order passed by the Assessing Officer u/s 271E of the Income Tax Act, 1961 (in short the Act ) dated 29.09.2014. 2. At the time of hearing none appeared on behalf of assessee in spite of issuance of notice for hearing more than one occasion and Ld. Departmental Representative(DR), was present for the Revenue. In the absence of any appearance by the assessee, the appeal is being disposed of ex parte qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the ld. CIT(A) who has confirmed the penalty imposed by the Assessing Officer. 6. Aggrieved by the order of the ld. CIT(A), the assessee is in appeal before us. 7. The ld. Counsel for the assessee has relied on the submissions made before the authorities below and on the other hand the ld. DR has primarily reiterated the stand taken by the Assessing Officer which we have already noted in our earlier para and the same is not being repeated for the sake of brevity. 8. We have heard ld. D.R. for the Revenue and perused the material available on record. We note that the assessee is a society registered under Societies Registration Act, 1860 as well as approved as a charitable Institution u/s 12A/12AA of the Act. It files its return o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder to this effect (f) the very purpose of specification of mode vis-a-vis prevention of black money circulation etc. It was accordingly urged that there being lawful compliance and no violation as such, no penalty u/s. 271E be imposed. Since the assessee made payment through RTGS/Bank transfer modes therefore, penalty u/s 271E should be deleted. 9. During the appellate proceedings, the assessee filed written submission before ld. CIT(A) which is relevant here and the same is being reproduced below: During the previous year ended 31.03.2011, it had paid a sum of ₹ 2,75,000/- to M/s Village Welfare Society (VWS) constituting a repayment of loan it had taken earlier to meet the financial needs, towards the fulfillmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he very purpose of specification of mode vis-a-vis prevention of black money circulation etc. It was accordingly urged that there being lawful compliance and no violation as such, no penalty u/s. 271E be imposed. However, the Ld. JDIT(E ), Kolkata after taking a superficial and prejudice view with regard to the points highlighted in the above submission, be means of a non-speaking order simply impose penalty of ₹ 375000/- being the amount of loan so repaid u/s. 271E.So, it is on record that the repayment had been made solely by means of banking channel (Ex. 3A to 3E) in order to ensure and fulfill necessary verifiability. You may kindly appreciate just like account payee mode this mode, being equivalent thereto, equally facilitates tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties, besides a specific direction from the lender on whom it depended heavily for necessary fund availability.In the Assessment the genuinely of loan transaction had been fully appreciated and therefore there had been no adverse eventuality as to its identify. It is worth appreciating that the very purpose of section 269SS/269T had been to curb the circulation and the evils effects of its multiplying growing manifold. It is evident from the circular no. 387 which reads as under: Circular No. 387 dated 06.07.1984 on the subject in which it was provided that new section 269SS has been inserted in the Act with a view to counter the device of unaccounted money brought into books of account in the form of loans and deposits in order to ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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