9911796707
TMI Blog2005 (10) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... e question of fact, we do not find any ground to interfere with the finding of the Income-tax Appellate Tribunal - - - - - Dated:- 26-10-2005 - Judge(s) : P. D. DINAKARAN., N. KANNADASAN. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J. - The above tax case appeals are directed against the order of the Income-tax Appellate Tribunal in I.T.A. Nos. 1266 1268/Mds/2001, dated May 21, 2003. The Revenue is the appellant. The assessment years involved are 1997-98 and 1996-97. The case of the appellant is that the assessees/respondents herein was engaged in the business of accepting deposits from the public for the purpose of real estate and property development business. The assessment order under section 143(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal estate and property development carried on by related concerns. It is seen from the records that there was a search under section 132 of the Act in the group of companies and block assessments were made under sections 143(3) read with sections 158BC and 158BD of the Act on December 29, 1998. The Assessing Officer found that there were instances of contravention of section 269T of the Act by the firms in repaying deposits with interest to the depositors. In the case of Kasi Consolidated Finance Corporation, there was one such instance for the assessment year 1998-99; in the case of Kasi Consultant Credit Corporation there were thirteen such instances for the assessment year 1996-97 and six instances for the assessment year 1997-98; i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asonable cause for repayment of deposits by the assessees in cash and the application of section 271E of the Act was not automatic, as the levy of penalty was governed by the provisions of section 273B also. Agreeing with the aforesaid contentions raised by the assessees, the Commissioner of Income-tax (Appeals) cancelled the penalty levied by the Assessing Officer. It is also seen from the copies of the bank statements furnished before the Assessing Officer that most of the repayments were effected through cheques; some of the repayments are inter-company transfers for group housing and purchase of flats and some of the deposits were repaid after the closure of the banking hours. In some of the cases, it is seen that depositors were lady ..... X X X X Extracts X X X X X X X X Extracts X X X X
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