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TMI Blog2022 (7) TMI 1263X X X X Extracts X X X X X X X X Extracts X X X X ..... 69SS - Therefore no question of levying penalty u/s. 271D relating to the journal entry - Thus, the finding made by the CIT(A) purely factual in nature, which does not require any interference and the same is hereby upheld. Thus the grounds raised by the Revenue is hereby rejected and the appeal is dismissed. - ITA No. 1620/Ahd/2019 - - - Dated:- 27-7-2022 - Shri Waseem Ahmed, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Appellant : Shri Mehul K. Patel, A.R. For the Respondent : Shri Sudhendu Das, Sr.D.R. ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- The present appeal has been filed by the Revenue against the order dated 16.08.2019 passed by the Commissioner of Income Tax (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 269SS of the Act. It is thereafter the Addl. CIT issued another show cause notice u/s. 271D on 18.05.2017 for contravention of provisions of section 269SS for the loans to Shri Sivaprasad Patnam and Shri Raja Rajeshwari Patnam. 2.3. In response to the show cause notice , the assesse replied that in the Assessment order passed u/s. 143(3) dated 23.11.2016, the assessing officer proposed to initiate penalty proceedings u/s. 271D related to the cash transaction of Rs. 1,00,000/- made to Shri Patnam Swathi only. However, the Joint CIT by way of second show cause notice dated 18.05.2017, proposed to levy penalty u/s. 271D for the transactions made with Shri Sivaprasad Patnam of Rs. 1,08,30,091/- and Shri Raja Rajeshwari Patnam a sum of Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany/assessee clearly supports source of fund originated from ICICI Bank by way of loan in the name of director. Tally softwere did not allow data entry in correct format, which necessitated the assessee to pass journal entry. Journal entry does not in any way in this case, indicate cash transaction between the Director and the assessee company. Otherwise to say, Director of Sivaprasad patnam availed mortgaged loan from ICICI bank and since the company needed funds. Hence, ICICI Bank transferred loan directly to the assessee company. However, only in the case of Swati Patnam (wife of Director Sivaprasad Patnam), the assessee itself admitted in the written submission that the assessee company has taken CASH loan of Rs. 1,00,000/- which is co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ICICI Bank Ltd., Kotak Mahindra Prime Ltd. and therefore no violation of section 269SS . Thus the order passed by the Ld. CIT(A) does not require any interference and therefore the Revenue appeal is liable to be dismissed. 7. We have given our thoughtful consideration and perused the materials available on records. The assessee clearly established that the loan availed by the Director Sivaprasad Patnam is transferred to the assessee company because of its company is urgent need of cash/finance. The same were being availed by way of loan from various banks and directly credited into the account of the assessee company and necessary journal entries have been made in the book of the assessee company. Thus, there is no violation of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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