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TMI Blog2020 (12) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [ 2012 (6) TMI 358 - BOMBAY HIGH COURT ] which was rendered on 12th June 2012, there was reasonable cause for the assessee to receive and re pay loan through journal entries because of various decisions of the Tribunal holding that receipt and re payment of loan through journal entries would not come within the purview of section 269SS and 269T of the Act, the non compliance to the provisions of section 269SS and 269T of the Act would certainly be a reasonable cause under section 273B of the Act for non imposition of penalty under section 271D and 271E. In the facts of the present appeal, admittedly, the availing and re payment of loan through book entries was prior to 12th June 2012. Therefore non compliance to the provisions of sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 271E of the Act. As alleged by the Assessing Officer, in rsponse to the show cause notice issued under section 271D and 271E r/w section 274 of the Act, the assessee did not furnish any explanation, but sought adjournment. Accordingly, he proceeded to pass orders imposing penalty under section 271D and 271E of the Act for amounts of ₹ . 6,11,778 and ₹ 2,63,000 respectively. Being aggrieved with the penalty orders so passed, the assessee preferred appeals before the first appellate authority. After considering the submissions of the assessee in the context of facts and material on record, learned Commissioner (Appeals) having found that part of the loan taken is below the threshold limit of ₹ . 20,000 and some amount has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons, the assessee has specifically stated that except some small amounts below the threshold limit of ₹ 20,000, all other loan amounts exceeding ₹ 20,000 were availed and re paid through account payee cheque. The details of such cheque payments were also furnished. Though, learned Commissioner (Appeals) after verifying the submissions and evidences furnished by the assessee has not found anything amiss, however, the only doubt he has raised is with regard to the delay in the relevant entries as made in the ledger account and as reflected in the bank statement. Though, there is no difference in the amount notified. Thus, learned Commissioner (Appeals) has held that the assessee has failed to establish the nexus between the paymen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd re pay loan through journal entries because of various decisions of the Tribunal holding that receipt and re payment of loan through journal entries would not come within the purview of section 269SS and 269T of the Act, the non compliance to the provisions of section 269SS and 269T of the Act would certainly be a reasonable cause under section 273B of the Act for non imposition of penalty under section 271D and 271E of the Act. In the facts of the present appeal, admittedly, the availing and re payment of loan through book entries was prior to 12th June 2012. Therefore, as per the ratio laid down by the Hon'ble Jurisdictional High Court in Ajitnath High Tech Builders Pvt. Ltd. (supra), non compliance to the provisions of section 269 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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