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TMI Blog2010 (12) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... ount - Decided in favour of the assessee - ITA No. 694/Mum/2010 - - - Dated:- 3-12-2010 - R.S. Padvekar, B. Ramakotaiah, JJ. Dr. P. Daniel for the Appellant Rajiv Khandelwal for the Respondent ORDER B. Ramakotaiah: This appeal by the Revenue is against the order of the CIT(A) XXXVIII, Mumbai dated 16.11.2009. 2. In the two grounds raised by the Revenue the issue of levy of penalty under section 271D was contested. 3. Briefly stated, The Addl. Commissioner noticed that the assessee had received an amount of loan of Rs.26,16,588/- from M/s. Nakshatra Software Pvt. Ltd. and a loan of Rs.9,99,97,540/- from M/s. Panther Ind. Product Ltd., otherwise than by Account Payee Cheque or Draft in violation of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant. Madhavpura Mercantile Co-op Bank Ltd. credited the account of the appellants towards the invocation of the said shares. In turn, the appellants credited the account of M/s. Panther Industrial Products Ltd. In any view of the matter, all the transactions are bank entries, which does not amount to acceptance of loan in contravention to section 269SS." It is also further submitted that as transactions were made through journal entries, the provisions of section 269SS were not attracted and that under identical facts, in assessee's own case for A.Y. 1999-2000 in ITA No.3310/M/04 and for A.Y. 2003-04 in ITA No.537/M/07, the penalty levied under section 271D stood deleted. It was further submitted that in as many as 39 group cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... une Bench in the case of Sunflower Builders Pvt. Ltd. 61 ITD 227 to which one of us (JM) was party. In that case also, the question arose whether the penalty u/s. 271-D could be imposed where the entries were made through the journal entries. The Tribunal, after detailed discussions, held that the acknowledgement of debt by the assessee company by passing a journal entry in the books of accounts would not come within the ambit of the words "loans or deposits of money" as mentioned in Section 269-SS. Therefore, following these decisions of the Tribunal, we hold that no penalty can be levied where the payments are said to be made or received through journal entries." 4. The learned Standing Counsel for the Revenue submitted that the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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