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TMI Blog2018 (4) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in acceptance of cash from suppliers. Apart from that, the Tribunal was right in reversing the finding of the Commissioner of Income Tax (Appeals) on the ground that there was no distress situation for the assessee so as to take loan, since it is their own case that they had sufficient cash during the relevant time. - Decided against assessee. - Tax Case (Appeal) No. 476 of 2008 - - - Dated:- 3-4-2018 - T. S. Sivagnanam And N. Seshasayee, JJ. For the Appellant : Mr.M.P.Senthilkumar For the Respondent : Mr.Karthik Ranganathan Mr.Vijay Kumar Punna Mr.Prabhu Mukunth Arunkumar JUDGMENT T. S. Sivagnanam, J. Heard the learned counsel for the appellant and the learned counsel for the respondent. 2. This appeal by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuine business transactions and that to consider them as loan, the provisions of Section 269SS of the said Act, if so needed, would apply. 4. Since the assessee took such a stand accepting the same as loan in contravention of the provisions of Section 269SS of the said Act, the Assessing Officer intimated the assessee that penal action under Section 271D of the said Act would be initiated separately. Accordingly, the Additional Commissioner of Income Tax, Company Range-II, Chennai initiated action and by order dated 25.2.2004, imposed penalty under Section 271D(1) of the said Act to the tune of ₹ 41,95,000/-. 5. Aggrieved by the same, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who, by or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsidering this, the Assessing Officer held that they were in the nature of loans. The Commissioner of Income Tax (Appeals), though took note of the said submission made by the assessee, found that the prawn seeds, which were supplied to the assessee, were treated at par with cash and that this was necessitated by the fact that the trade is highly volatile and accounting to that extent became difficult. 8. In fact, the said contention of the assessee was considered by the Additional Commissioner of Income Tax, who had afforded an opportunity to the assessee to substantiate the genuineness of the parties and the claim made by them that the transactions related to trade alone, which were peculiar to the business carried on by the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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