2003 (1) TMI 46 - HC - Income Tax

1. Whether the Income-tax Appellate Tribunal has erred in deleting the penalty imposed under section 271D of the Act by holding that the appellant did not contravene the provisions of section 269SS of the Income-tax Act? - 2. Whether the order of the Income-tax Appellate Tribunal is perverse on both law and merits? - we are in complete agreement with the Tribunal that the provisions of section 269SS were not attracted on the facts of the case. Admittedly neither the assessee nor IL & FS had made any payment in cash. The order of the Tribunal does not give rise to any question of law much less a substantial question of law.

Summary

The High Court Delhi dismissed the Revenue's appeal against the Income-tax Appellate Tribunal's order regarding penalty under section 271D of the Income-tax Act for the assessment year 1998-99. The Tribunal deleted the penalty, stating that the provisions of section 269SS were not violated as the payment was made by account payee cheque and not in cash. The High Court agreed with the Tribunal's findings and declined to entertain the appeal.