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TMI Blog2013 (10) TMI 983X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee done so then it could have done it by taking this amount of Rs. 92,000 from the promoters of the company, through account payee cheques or draft which could have enabled the assessee to genuinely avoid penal action of the Excise Department, as well as penalty of the Income-tax Department, which had now to suffer on account of violation of section 269SS of the Income-tax Act, 1961 – Decided against the Assessee. - - - - - Dated:- 23-4-2013 - HEMANT GUPTA AND RITU BAHRI MS., JJ. JUDGEMENT Ms. Ritu Bahri J.- The present appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), is against an order dated April 24, 2000, passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... avention of section 269SS on account of two cash credit entries. In response to the show-cause notice issued by the assessing authority, the assessee filed its reply and took the stand that they were expecting the money from Calcutta Depot in the beginning of March, 1991. In order to save the factory, from being close down, the company raised a loan of Rs. 1 lakh on March 7, 1991. This loan was disbursed on March 8, 1991, as a bonus in order to pacify the workers. The expected amount from the Calcutta Depot was received on March 12, 1991, and it was on this day that the complete bonus was disbursed. The penalty of Rs. 1 lakh has been imposed as this amount was credited in the books of account. The appellant company had taken a loan of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presuming that the assessee wanted the realisation of the amount of the bearer cheque on March 8, 1991, itself, i.e., the date of issue of the cheque, even then the acceptance of the loan amount of Rs. 1 lakh through bearer cheque was not justified because in case the assessee had accepted the payment through crossed account payee cheque/draft and since both the parties were having accounts in the same bank, proceeds of the cheques could have been very easily realised on the date of presentation itself, i.e., March 8, 1991, because the bank was only to pass the debit entry in the accounts of the assessee, and M/s. Singh Finance and Investment Co. (P.) Ltd. and credit entry in favour of the assessee, which could have been easily done during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance in its bank account or not. On December 5, 1990, it realised, that the Excise Department was presenting the cheques for encashment and then it rushed to take the cash of Rs. 92,000 from its promoters, to deposit the same in bank to avoid the alleged penal action of the Excise Department. The question arises as to why the assessee issued cheques on November 16, 1990,. and November 17, 1990 to the Excise Department, when the assessee did not have sufficient balance in its bank account. Even if it was so then why it waited till December 5, 1990, and not arranged the amount immediately after the issue of the cheques. Had the assessee done so then it could have done it by taking this amount of Rs. 92,000 from the promoters of the company ..... X X X X Extracts X X X X X X X X Extracts X X X X
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