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TMI Blog2019 (4) TMI 503X X X X Extracts X X X X X X X X Extracts X X X X ..... er these two organizations viz., Sri Muthukumaran Medical College & Research Institute (SMMCH & RI) & Arulmigu Meenakshi Amman College of Engineering (AMACE) are part of the respondent-assessee are a different entities and also failed to examine whether deposits are originally accepted in cash in the case of Arulmigu Meenakshi Amman College of Engineering (AMACE). In our considered opinion, these facts would be crucial to decide whether journal entry were passed as a cover up exercise in order to avoid the penal consequences of accepting deposits in cash. Therefore, we remand the matter to the file of Assessing Officer for fresh adjudication in accordance with law after affording due opportunity of being heard to the respondent-assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee and the same is shown to have been received in its books of accounts, it partakes the nature of the deposit and accordingly the provisions of Sec.271D is attracted, which decision is squarely applicable to the facts and circumstances of the assessees case. 2.3. Having regard to the detailed discussions made by the Addl. CIT in the penalty order u/s.271D for the AY 2013-14 in the assessee s case the ld. CIT(A) ought to have sustained the entire penalty levied u/s.271D amounting to ₹ 77,89,500/-. 3. For these grounds and any other ground including amendment of grounds that may be raised during the course of the appeal proceedings, the order of learned CIT(Appeals) may be set aside and that of the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 Shri Sethuraman. R 10.11.2012 45,000/- 45,000/- 3 Shri Venkatraman.S 10.11.2012 45,000/- 45,000/- 4 Shri Jayaraman 10.11.2012 45,000/- 45,000/- 5 Smt. Basheera Banu M 08.03.2013 99,800/- 99,800/- 6 Smt. Rani. A.N. 18.01.2013 40,700/- 40,700/- Total 77,89,500/- 4. Based on this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... salaried and lower middle income group at favourable rates of interest strictly in accordance with the norms prescribed by the Ministry of Corporate Affairs and RBI and so any penal action against our company would affect the financial position of the company and will affect the NIDHI approval and legal status of the company. 5. The Assessing Officer after considering the above submissions held that the provisions of Sec.269SS are attracted once the aggregate of the amounts received exceeds sum of ₹ 20,000/- even if single amount received does not exceed ₹ 20,000/-. As regards to amount of loan received from Sri Muthukumaran Medical College, Hospital Research Institute, the Assessing Officer held that the respondent-assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation of provisions of Rule 46A and also submitted that any amount received otherwise than by way of Cheque or Demand Draft are hit by the provisions of Sec.269SS of the IT Act and reliance in this regard was placed on the decision of the Hon ble Allahabad High Court in the case of CIT v. Sunil Sugar Co. Kanpur. On the other hand, the Ld.Counsel, Shri G.Baskar has submitted that the deposits were renewed through transfer entries. The journal entries passed in respect of the deposits of the students belonging to Sri Muthukumaran Medical College Research Institute (SMMCH RI) amounting to ₹ 75,14,000/- through journal by transferring the same from Arulmigu Meenakshi Amman College of Engineering (AMACE) on the same day of 20.03.2013 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts that the deposits were received by way of journal entry in which case the provisions of Sec.269SS are not attracted, placing reliance on the decision of the Hon ble Madras High Court in the case of Worldwide Township Projects Ltd. It is a matter of record that before the Assessing Officer the stand respondent-assessee was that the amount was received by way of transfer from AMACE Saving Bank Account. Before us, it was stated that AMACE is another division of the respondent-assessee. Whereas during the course of proceedings before the Ld.CIT(A), the explanation offered was that journal entry was passed by transferring the said amount from Arulmigu Meenakshi Amman College of Engineering (AMACE) to Sri Muthukumaran Medical College R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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