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TMI Blog2013 (8) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... as per law. - ITA Nos.6082 & 6083/Mum/2009 - - - Dated:- 16-8-2013 - Shri R.S. Syal and Shri Sanjay Garg, JJ. Appellant by: Shri Rajiv Khandelwal Respondent by: Dr. Danial ORDER R.S. Syal, J. These two appeals by the assessee are directed against the sustenance of penalty imposed u/ss 271D and 271E of the Income-tax Act, 1961 in relation to the assessment year 2005-2006. For the sake of convenience, we have clubbed these appeals for disposal by this consolidated order. ITA No.6083/Mum/2009 : Penalty u/s 271D 2. The facts apropos this appeal are that the Assessing Officer observed during the course of assessment proceedings that the assessee had taken following loans exceeding the limits specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rbheram Harakchand through journal voucher. The Assessing Officer noticed the findings of the Hon ble Joint Parliamentary Committee of Lok Sabha and Rajya Sabha in which Ketan Parekh group companies were involved. In the absence of the assessee showing any reasonable cause in terms of section 273B, the Assessing Officer imposed penalty of ₹ 41.05 lakh u/s 271D of the Act. The learned CIT(A) upheld the penalty so imposed by the A.O. 4. After considering the rival submissions and perusing the relevant material on record, it is observed that similar penalties imposed in other group concerns came to be deleted by the Tribunal through various orders on the ground that where a loan is received or repaid through journal entry, there can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business the assessee was required to repay certain expenses over the year which were incurred by M/s.Nakshatra Software Private Limited, its sister concern and the loan came to be created by way of transfer entry. Other reasons were adduced to indicate that the receipt of loan from other parties in violation of the provisions of section 269SS was for bona fide reasons. Since there is no material on record to indicate the reasonable cause in respect of these loan transactions, we are of the considered opinion that the ends of justice would meet adequately if the impugned order on this issue is set aside and the matter restored to the file of A.O. We order accordingly and direct him to decide the sustenance or otherwise of penalty on the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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