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TMI Blog2018 (5) TMI 1731X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Tribunal 'B' Bench, Chennai, allowing the appeals, being I.T.A.Nos.262 and 263/Mds/2015, in relation to the assessment years 2008-2009 and 2012-2013 filed by the respondent Revenue and restoring the penalty imposed by the Assessing Officer under Sections 271E and 271D of the Income Tax Act, 1961 (hereinafter referred to as the IT Act ). 2. The facts giving rise to these appeals are very briefly enumerated hereinafter. 3. It appears that a survey under Section 133A of the IT Act was conducted in the case of Mr.A.Kannan, Proprietor, Vadamalayan Finance, No.C-4, II Floor, Thiyagaraja Apartment, First Main Road, Thanthai Periyar Nagar, Pondicherry 605 005, on 8.9.2011 and books of accounts and supporting documents were impounded under Section 133A(3) of the IT Act. 4. The survey revealed that the said A.Kannan carried on business of lending, even though he had no licence to do so. From the records maintained by the said A.Kannan, it was noticed that the assessee had obtained and also repaid loans exceeding ₹ 20,00,000/- in cash. It further appears that the Assessing Officer found that the loans and repayment had not been accounted for in the regular books o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation. For the purposes of this section, (i) banking company means a company to which the provisions of the Banking Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking institution referred to in section 51 of that Act; (ii) co-operative bank shall have the same meaning as assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949) ; (iii) loan or deposit means loan or deposit of money; (iv) specified sum means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place. Section 269T. Mode of repayment of certain loans or deposits. No branch of a banking company or a co-operative bank and no other company or co-operative society and no firm or other person shall repay any loan or deposit made with it or any specified advance received by it otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or deposit or paid the specified advance, or by use of electronic clearing system through a bank account if (a) the amount of the loan or deposit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsfer takes place. Section 271D. Penalty for failure to comply with the provisions of section 269SS. (1) If a person takes or accepts any loan or deposit or specified sum in contravention of the provisions of section 269SS, he shall be liable to pay, by way of penalty, a sum equal to the amount of the loan or deposit or specified sum so taken or accepted. (2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner. Section 271E. Penalty for failure to comply with the provisions of section 269T. (1) If a person repays any loan or deposit or specified advance referred to in section 269T otherwise than in accordance with the provisions of that section, he shall be liable to pay, by way of penalty, a sum equal to the amount of the loan or deposit or specified advance so repaid. (2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner. 6. As observed above, in course of inspection of the books of A.Kannan, it was found that the appellant assessee had repaid loan of ₹ 20,00,000/- in cash to A.Kannan on various dates. 7. Notice under 271E read with Section 269T of the IT Act was se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der the above facts and circumstances and respectfully following the above decision of the Coordinate Bench of the Tribunal as well as the decision of the Hon'ble Jurisdictional High Court in the case of P.Muthukaruppan v. JCIT ([2015] 375 ITR 243), we reverse the findings of the ld. CIT (A) in deleting the penalty levied under section 271E for the assessment year 2008-09 as well as penalty under section 271D for the assessment year 2012-13 and restore that of the Assessing Officer by sustaining the penalty levied under section 271E and 271D of the Act for both the above assessment years. Thus, the ground raised by the Revenue stands allowed. 12. The learned counsel appearing on behalf of the appellant assessee, Mr.A.S.Sriraman, has strenuously argued that the learned Tribunal breached judicial discipline in ignoring the orders of other Benches of coordinate strength of the learned Tribunal. 13. However, in our considered opinion, every assessment year is different and a factual finding pertaining to any one assessment does not operate as a binding precedent in respect of subsequent assessment years. The orders of other Benches of coordinate strength of the learned Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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