TMI Blog2021 (5) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of section 273B - From the order of the Ld. CIT (A) it appears that the assessee was not able to explain the genuineness of the source of funds obtained from its Managing Director. In the interest of justice, we hereby remit the matter back to the file of the Ld. AO to examine that no unexplained funds are introduced in the business of the assessee Company as loan from the Managing Director and if it found that the source of fund obtained from the Managing Director of the assessee Company is explained then delete the penalty levied invoking the provisions of section 271D of the Act. If found otherwise, the Ld. AO shall pass appropriate order in accordance with law and merit. Appeal of the assessee is allowed for statistical purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter. The person who actually received the said order left the employment of the company without bringing the said order to the notice of any responsible authority. The order cop was ultimately discovered while perusing all the contents / papers lying in his desk after his quitting employment. As such, I could not inform the position to the Advocate / Legal representative appointed by us to initiate further action. .. 4. On perusal of the affidavit filed by the Managing Director of the assessee-company, We are of the view that the reason for the delay was because of the assessee-company s employee who received the CIT (A) s order and without bringing the same to the notice of the responsible official in the assessee-compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity clearly shows that there was a running current account in the books of account of the assessee in the name of Mr.S.V.S.Manian. Mr.S.V.S.Manian used to pay the money in the current account and used to withdraw the money also from the current account. The Revenue should establish that what was received by the assessee is a loan or deposit within the meaning of Section 269SS. The deposit and the withdrawal of the money from the current account could not be considered as a loan or advance. Further it was also found that the assessee filed a letter dated 29.09.97 and in that letter he explained that the amount received from Mr.S.V.S.Manian had been shown as unsecured loan from directors in the Balance Sheet. As per the Companies Act, under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed by Sri M. Srinivasa Rao, therefore no salary credits are found in the bank accounts. There are no credits in the bank account of rental income / income from consultancy business. Further, the amount received by Sri M. Srinivasa Rao by selling wire mesh to M/s. Murugan Enterprises is not reflected anywhere in the computation of income of Sri M. Srinivasa Rao. Therefore, obvious conclusion is that Sri M. Srinivasa Rao did not offer to tax the amounts received from M/s. Murugan Enterprises. This unaccounted income is given as cash loan to the appellant company. Section 269SS is brought into statute to block the introduction of black money in the form of cash receipts, more particularly in the cases where sources are unaccounted / unexp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its day-to-day emergency expenses. In this situation, the decision relied by the assessee will be relevant and the assessee Company shall be entitled to relief as per the provisions of section 273B of the Act. However, from the order of the Ld. CIT (A) it appears that the assessee was not able to explain the genuineness of the source of funds obtained from its Managing Director. Therefore, in the interest of justice, we hereby remit the matter back to the file of the Ld. AO to examine that no unexplained funds are introduced in the business of the assessee Company as loan from the Managing Director and if it found that the source of fund obtained from the Managing Director of the assessee Company is explained then delete the penalty levied ..... X X X X Extracts X X X X X X X X Extracts X X X X
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