9911796707
TMI Blog2012 (4) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... -1, Jalpaiguri u/s. 271E of the Act. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the levy of penalty u/s. 271E of the Act for an amount of Rs.1 lac. 3. We have heard rival contentions and gone through facts and circumstances of the case. We find that the assessee is an individual engaged in the fertilizers business carrying on proprietary business under the name and style of Balaji Krishi Bhander at Jalpaiguri. The assessee has received trade advances of Rs.1 lac by account payee cheque dated 03.12.2005 from his brother Shri Ajay Kr. Agarwala (Narari), who is also fertilizer dealer. Assessee has given tender for supply of fertilizer and was very much confident and hopeful of getting the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he argument that the transactions were genuine cannot help the assessee. 4. Before us, Ld. Counsel for the assessee stated that the amount of advance of Rs.1 lac to assessee was by his own brother and repayment is made of the same advance. First, Ld. Counsel for the assessee stated that the credit is genuine and moreover, the transaction is between brothers i.e. assessee Shri Manoj Kr. Narari and Shri Ajay Agarwal. This fact he demonstrated before us from statement of facts filed before CIT(A). Even in grounds of appeal the assessee has raised the issue that the amount was received as advance for supply of goods from assessee s own brother having in the same line of business and because of failure to make the supply, the amount was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Natvarlal Purshottamdas Parekh (supra) has confirmed the findings of Tribunal as under: 18. As discussed above, the annexure attached to the penalty order goes to show that each of the family members of the assessee and each one of them was having sufficient opening balance as on April 1, 1990. After that we have to look into sources of the amounts received by the assessee on behalf of his family members as the same is an important factor. Handsome amount has been received on account of maturity of NSCs and then most of the amounts have been credited on account of gifts received from one family member to other and that was through journal entry except Rs. 32,000 which was gift by one family member to other. These amounts were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... family member. These facts as mentioned above, have not been challenged by the Revenue as genuineness of these transactions, viz., receipts of amount of NSCs, book entries relating to gift from one family member to other and credit entries in respect of salary and bonus and rent etc., the genuineness of investment in PPF, LIC premium made towards different types of taxes and different book entries, transaction relating to gifts are not doubted by the Revenue. Apart from it, the assessee has filed documents from pages 1 to 14 and pages 17 to 163 of the paper book in support of these entries and the learned Departmental representative was not able to point out that facts as narrated above and relied on by the assessee are in any manner not tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant evidence and taking into consideration irrelevant evidence. In the present case, that is not the position and in fact that is not even alleged. Furthermore, the Tribunal has also found that the assessee had been able to establish existence of a reasonable cause, even if the finding of the Tribunal that there was no violation is not accepted. In the circumstances, there is no reason to take a different view of the matter. The Tribunal has found that on the facts and in the light of the evidence on record there was no violation of either the provisions of section 269SS or section 269T of the Act. The Tribunal has further found that there was a reasonable cause, assuming that there was any violation by the assessee. Hence, the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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