2013 (6) TMI 858 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of penalties u/s 271D and 271E of the Income Tax Act, 1961.

Penalty u/s 271D - Issue Details:
The Revenue alleged that the assessee received a loan of Rs. 10,00,000 in cash, violating Section 269SS of the Act. The Revenue's case was based on a blank signed cheque found in possession of another individual. The assessee denied receiving any loan and provided evidence to support his claim. The CIT(A) accepted the assessee's plea, stating that the Revenue failed to establish the default. The Revenue argued that the cheque found indicated the loan transaction, but the assessee's denial and lack of concrete evidence supported the deletion of penalties. The Tribunal affirmed the CIT(A)'s decision, noting the lack of evidence proving the loan transaction.

Penalty u/s 271E - Issue Details:
The second appeal pertained to the penalty under Section 271E for the alleged repayment of the loan. Since the first appeal established no proof of the loan receipt, the question of penalty for repayment did not arise. The Tribunal upheld the CIT(A)'s decision to delete the penalty under Section 271E as well. Both appeals by the Revenue were dismissed, concluding that there was insufficient evidence to support the penalties imposed.

Judgment Summary:
The Appellate Tribunal ITAT Pune dismissed the Revenue's appeals against the deletion of penalties u/s 271D and 271E of the Income Tax Act, 1961. The Revenue failed to establish the loan transactions, leading to the deletion of penalties by the CIT(A) and subsequent affirmation by the Tribunal. The appeals were dismissed on 20th June, 2013.