TMI Blog2021 (11) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... ength of the principles laid down in the case of CIT vs. Bombay Conductors Electricals Ltd [ 2008 (2) TMI 114 - GUJARAT HIGH COURT] the assessee cannot be given the immunity from the penalty provisions as specified under provisions of section 271E of the Act. It is for the reason that the genuineness of the transaction has not been proved by the assessee by filing the necessary details in establishing the fact that the adjustment entry was made by the assessee for the purchase of the land. In the absence of, the necessary details we are not able to persuade ourselves with the contention of the learned AR for the assessee. Entries were duly reflected by the assessee in accounts of the parties involved in the impugned transaction of loa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ₹ 25 lakhs imposed by Addl. CIT u/s 271E for alleged violation of section-269T of the Act. 2.3 That in the facts and circumstances of the case as well as in law, the Ld. CIT(A) ought not to have upheld the penalty of ₹ 25 lakhs imposed by Addl. CIT u/s 271E for alleged violation of section-269T of the Act. 2.4 The Ld. C1T(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entions of both the parties and perused the materials available on record. The assessee in the present has shown a loan of ₹ 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 ₹25 lakhs. It was explained by the assessee that he has purchased a piece of land for ₹ 50 lakhs jointly with Shri Milap- Jadeja in equal proportion. Furthermore, the entire payment of ₹ 50 lakhs was paid by him (the assessee) to the transferee namely Shri Bhimjibhai B Patel through banking channel. For this purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 monies are payable or debiting the account of a party from whom monies are receivable in the books of account, is clearly outside the ambit of the provision of section 269SS, be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, the appellant have paid a sum of ₹ 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 ₹ 25 lac was paid to sum Bhimji Patel as repayment of loan obtained from Shri Miilap Jadeja, appellant has not been able to offer any plausible explanation as to why such repayment was not made to Shri Milap Jadeja by the prescribed modes. Admittedly, the latter has given loans t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
