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TMI Blog2023 (10) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... is a transfer entry from her account to that of her husband, which again does not call for imposition of any penalty. On an examination of the account of Mr. Deepak Sanghavi first amount is debited to his account. The assessee paid this amount on his behalf and debited his account. Similar is the position regarding the second and third amounts which have been debited to the account of Mr. Deepak Sanghavi. These amounts are in the nature of payments made by the assessee on behalf of Mr. Deepak Sanghavi. Thus, the provisions of section 269SS are not attracted, which apply only on taking or accepting loan and deposit. Also minor amounts items of crediting his account with rent etc., which do not violate section 269SS - We, therefore, hold that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 's explanation was rejected and the penalty was imposed. The ld. CIT(A) echoed the penalty order. Aggrieved thereby, the assessee is in appeal before the Tribunal. 3. Having heard the rival submissions and gone through the relevant material on record, it is seen that the trigger of penalty was made because of the alleged qualification in the tax audit report. A copy of the report has been placed on record, which indicates that the qualification has been made in a sweeping manner. Notwithstanding that, the assessee filed written submissions before the AO during penalty proceedings and also the first appellate proceedings, explaining the nature of transactions with complete details, which have not been controverted by the authorities. In any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... next item is dated 31-10-2015 which is again payment of self-assessment tax of Rs. 21,370/- on her behalf. The next entry is dated 07-12-2015, by which the sum of Rs. 8,21,370/- has been transferred to her husband's account, namely, Mr. Deepak Sanghavi. It is clear that the first two transactions of Rs. 8.00 lakh and Rs. 21,370/- are the payments made by the assessee on behalf of Ms. Ritu Sanghavi and these cannot be called as `taking or accepting any loan' from Ms. Ritu Sanghavi. Since section 269SS is attracted when a person takes or accepts any loan or deposit in a mode otherwise than the banking channel etc,. it has no application in the instant case of the assessee when no loan was taken or accepted by the assessee from Ms. Ritu Sangha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see to the account of Mr. Deepak Sanghavi. The next is a minor amount of Rs. 6,008/- having transfer entry. These two amounts, though have been credited to the account of Mr. Deepak Sanghavi, but do not represent any loan or deposit taken or accepted by the assessee. Rather these are the items of crediting his account with rent etc., which do not violate section 269SS. The next two items of Rs. 3,60,000/- and Rs. 40,000/- are again debit entries representing certain amounts paid by the assessee on behalf of Mr. Deepak Sanghavi. These can also not be considered as taking or accepting any loan. The next item is Rs. 3,73,968/-, which is credited to the account of Mr. Deepak Sanghavi towards his salary for the month of November. This also canno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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