TMI Blog2021 (10) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... le 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. We thus adopt the above detailed discussion mutatis mutandis and restore the instant issue as well back to the Assessing Officer in the very terms - Assessee appeal allowed for statistical purposes. - ITA No. 216/Hyd/2020 - - - Dated:- 29-9-2021 - S. S. Godara , Member ( J ) And L. P. Sahu , Member ( A ) For the Appellant : B. Sai Prasad , A. R. For the Respondents : D. J. Prabhakar Anand , D. R. OR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g ₹ 20,000/- from Shri M. Srinivasa Rao, Managing Director of the Company. On query, the assessee had explained that the transaction between the assessee and its Managing Director cannot be treated as loan transaction because it is in the nature of current account. The assessee had further relied on the decision of the Hon'ble Madras High Court in the case of M/s. Idhayam Publications Private Limited reported in 285 ITR 221 wherein the High Court observed as under: 4. We heard the arguments of the learned counsel for the Revenue. We have perused the materials available in record. Admittedly Mr. S.V.S. Manian was one of the Directors. Therefore the order of the lower authority clearly shows that there was a running current ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax, Range-3, Hyderabad was of the view that the assessee's case is a fit case for levy of penalty U/s. 271D of the Act. On appeal, the Ld. CIT (A) dismissed the appeal of the assessee by observing as under:- During the appeal proceedings the appellant was also asked to submit bank account of Sri M. Srinivasa Rao, MD of the Company. In response, the appellant submitted MDs bank account with State Bank of India and with Punjab National Bank for AY 2011-12. Both the bank accounts did not contain any credit entries reflecting income of Sri M. Srinivasa Rao. It was further explained that the entire salary of Sri M. Srinivasa Rao was directly paid by the appellant company towards housing loans availed by Sri M. Srinivasa Rao, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore argued that the transaction cannot be considered as loan received from the assessee Companie's Managing Director. The Ld. AR further relied on the following decisions: (i) CIT vs. Sunil Kumar Goel [2009] 315 ITR 163/183 Taxmann 53 (Punj. Har.) (ii) CIT vs. Maheswari Nirman Udyog [2008] ITR 201/170 Taxman 502 (Raj.) (iii) CIT vs. Lakshmi Trust Co. [2008] 303 ITR 99 (Mad.) 8. The Ld. DR on the other vehemently argued in support of the orders of the ld. Revenue Authorities. 9. We have heard the rival submissions and carefully perused the materials on record. From the facts of the case, it appears that the assessee company has received cash from its Managing Director for meeting its day-to-day emergency ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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