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TMI Blog2010 (10) TMI 734X X X X Extracts X X X X X X X X Extracts X X X X ..... that he should have accepted the loans or deposits otherwise then by an account payee cheque or account payee bank draft - Since no case for initiation of penalty u/s 271E is made out therefore we do not deem it necessary to go into the facts whether the order was passed within limitation or the proceedings were initiated with limitation - Appeal is dismissed X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduced hereunder. "It has been pointed by your goodself that the assessee firm has violated the provision of section 269SS and section 269T of the Income Tax Act, 1961 in respect of transactions entered into between by the assessee firm with M/s. Superior Craft India and M/s. Supreme Export India during the year. Details of such transactions have been mentioned on page No.111 Part II volume 1 of the Auditor's Report. In this connection, we have to state that the assessee firm did not violated the provisions of section 269SS and section 269T in respect of transactions entered between these assessee firm and these parties concern. All transactions whether receipts or purchase or payment are made through payees account cheques and no oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed out from the same premises. According to the assessee the export of the garments to the USA is governed by quota issued by the Apparel Export Promotion Council. Therefore quantum of expected export to foreign buyer of the assessee are known in advance. Keeping in view the quota allotted for export, the raw material was purchased to overcome any shortage in the subsequent dates. Sometimes it happened that the quota was issued in the name of sister concerns i.e. M/s. Superior Crafts India and M/s. Supreme Exports India by the Apparel Export Promotion Council and the assessee may not got any quota, but the assessee has raw material in its hands. In such situation the raw material of the assessee was transferred to the sister concern to be u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccepted the loans or deposits otherwise then by an account payee cheque or account payee bank draft. Similarly he should have made repayment of such loans and deposits otherwise then by an account payee cheque or by account payee bank draft. The basic requirement is that certain loans or deposits ought to have been accepted or repaid. In the present case the assessee has not accepted any loans or deposits. Before Ld. CIT(A) it was demonstrated by the assessee that in the case of M/s. Superior Crafts (India), a perusal of account shows that assessee had an opening credit balance of Rs.2,01,60,008/- as on 1st April, 2001. This was a current account dealing with the transaction made on their behalf and debited to their account by journal entri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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