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TMI Blog2018 (6) TMI 1561X X X X Extracts X X X X X X X X Extracts X X X X ..... ithdrawing cash from one account and depositing the cash into the other account. The source of repayment or payment of loan was never in question. There was no leakage of Revenue or detection of circulation of unaccounted money by way of cash loans which was the fundamental purpose to curb the circulation of black money. The transactions have been taken place between two current accounts and also between the Director of the Company and the Company itself in the form of maintenance of a current account for contingencies of business purpose and also for contingencies of the Director for salary and payment of credit card dues. While such transactions may attract other provisions of the Income Tax Act,1961, but it is not a fit case for the levy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order passed by him is arbitrary and unjustified. 3. That the order of the Ld. CIT(A) is erroneous, arbitrary, opposed to law and facts of the case and is, thus, untenable. Grounds of appeal in ITA No. 193-CHD-2018 for A.Y. 2011-12 1. That the Ld. CIT(A) has erred in upholding the imposition of penalty of ₹ 79,55,010/- under section 271D of the Act which is arbitrary and unjustified. 2. That the Ld. CIT(A) has failed to appreciate the reasonable cause pleaded before her in the correct perspective and as such the order passed by him is arbitrary and unjustified. 3. That the order of the Ld. CIT(A) is erroneous, arbitrary, opposed to law and facts of the case and is, thus, untenable. Grounds of appeal in ITA N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s erroneous, arbitrary, opposed to law and facts of the case and is, thus, untenable. Grounds of appeal in ITA No. 197-CHD-2018 for A.Y. 2011-12 1. That the Ld. CIT(A) has erred in upholding the imposition of penalty of ₹ 76,68,000/- under section 271E of the Act which is arbitrary and unjustified. 2. That the Ld. CIT(A) has failed to appreciate the reasonable cause pleaded before her in the correct perspective and as such the order passed by him is arbitrary and unjustified. 3. That the order of the Ld. CIT(A) is erroneous, arbitrary, opposed to law and facts of the case and is, thus, untenable. 3. Brief facts of the case are that the assessee has received cash loan from the company namely M/s Ceigall India Ltd. Lud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalty on the grounds that the assessee has failed to substantiate its claim even during the appellate proceedings about the reasonableness of urgency of the cash loan. The Ld. CIT(A) relied on the judgment in the case of Tenamal Chajjer (2005) 96 ITD 210 (Chennai) wherein it was held that the provisions of Section 269SS is very strict and will apply strictly where the loan or deposit is taken or accepted from any other person otherwise by an account payee cheque or account payee draft if the amount of such loan or deposit or the aggregate amount of such loan or deposit is ₹ 20,000 or more. The only saving clause for reasonable cause is provided in section 273B for violation of section 269SS and in view of this provision, no pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his does not at all constitute loans and deposits as envisaged under section 269SS of the Act. 7.1. The Ld. AR further argued that it is not the case of the department that any unaccounted cash has been found, identified are detected in the case of the assessee. There is always been a corresponding entry in the current account of the Director maintained by the company. To that extent he argued that the purpose of the enactment of the provision of Section 269SS is to stop the circulation of unaccounted cash or introduction of unaccounted monies into the books by the way of loans which is not the case in the case of the assessee. He further relied on the judgment in the case of CIT Vs. Idhayam Publications Ltd. 163 Taxmann 265 wherein it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith PNB SB Account 3. Credit Card payment Similarly the assessee has given loan to the company mentioned the reasons as 1. Cash withdrawn from HDFC Account and given to the company. 11. All these transactions have been undertaken between two bank accounts by withdrawing cash from one account and depositing the cash into the other account. The source of repayment or payment of loan was never in question. There was no leakage of Revenue or detection of circulation of unaccounted money by way of cash loans which was the fundamental purpose to curb the circulation of black money. The transactions have been taken place between two current accounts and also between the Director of the Company and the Company itself in the form of mainten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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