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TMI Blog2021 (11) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Year 2014-2015. 2. The assessee has raised the following grounds of appeal: 1.1 The order passed u/s.250 on 24-10-2019 for A.Y.2014-15 by CIT(A)-8 , Abad upholding the penalty of Rs. 25 lakhs imposed by Addl. CIT u/s 271t for alleged violation of section-269T of the Act is wholly illegal, unlawful and against the principles of natural justice. 1.2 The Ld. CIT(A) has grievously erred in law and or on facts in not considering fully and properly the submissions made and evidence produced by the appellant with regard to the impugned penalty. 2.2 The Ld. CIT(A) has grievously erred in law and on facts in confirming the penalty of Rs. 25 lakhs imposed by Addl. CIT u/s 271E for alleged violation of section-269T of the Act. 2.3 That in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be any penalty on account of repayment of loan through the journal entries. 8. On the other hand the Ld. DR, vehemently supported the order of the authorities below. 9. We have heard the rival contentions of both the parties and perused the materials available on record. The assessee in the present has shown a loan of Rs. 44.70 lakhs as opening balance as on 1st April 2013 as evident from the copy of the ledger of Shri Milap Jadeja which is placed on page numbers 24 of the paper book. 9.1 The impugned amount of loan was reduced by the assessee by way of passing the journal entry as on 1 April 2013 by Rs.25 lakhs. It was explained by the assessee that he has purchased a piece of land for Rs. 50 lakhs jointly with Shri Milap- Jadeja in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has held as under: A plain reading of the section 269SS indicates that it applies to a transaction where a deposit or a loan is accepted by an assessee, otherwise than by an account payee cheque or an account payee draft. The ambit of the section is clearly restricted to transaction involving acceptance of money and not intended to affect cases where a debt or a liability arises on account of books entries. The object of the section is to prevent transactions in currency. This is also clearly explicit from clause (iii) of the Explanation to section 269SS which defines loan or deposit to mean "loan or deposit of money". The liability recorded in the books of account by way of journal entries, i.e. crediting the account of a party to whom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appellant has repaid the loan of Rs. 25 lac to Shri Milap Jadeja otherwise then a/c payee cheque, a/c payee demand draft or electronic clearing system. Admittedly, the appellant have paid a sum of Rs. 25 lac to Shri Bhimjibhai Patel for which appellant contended that the same was advanced for purchase of land belonging to Shri Bhimjibhai Patel as well as Shri Milap Jadeja. No corroborative evidence or the agreement / deed etc., was furnished. Appellant has given a general explanation that the repayment was towards advance for purchase of land On facts except the uncorroborated general explanation that the sum of Rs. 25 lac was paid to sum Bhimji Patel as repayment of loan obtained from Shri Miilap Jadeja, appellant has not been able to of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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