9911796707
TMI Blog2024 (1) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... d repayment of the same made by M/s. Shakti Sugar Ltd. to the aforesaid three entitiled based on the instructions of the petitioner and as regards the discharge of liabilities, suitable enteries have been made both in the books of account of the petitioner as well as M/s. Shakti Sugar Ltd. and in a similar way, the same was reflected in the audited books of account. When such being the case, initiation of proceedings against the petitioner appears to have been made under an wrong assumption that there was cash transaction. However, all these aspects have not been dealt with by the Assessing Officer and the same can be gone into by the Appeallate Authority in an Appeal pending before him. Therefore, this Court, prima facie is of the vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made in the books of M/s. Shakti Sugar Ltd and also in the books of the assessee company, with regard to the reduction of liabilities of M/s. Shakti Sugar Ltd. 4. Mr.A.S.Sriraman, learned counsel for the petitioner would submit that there was no cash transaction made by the petitioner and the same has also been clearly stated in the audited books of accounts and therefore, there is no violation of the provisions of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). In spite of that, the respondent/Assessing Officer passed the assessment order imposing the penalty under Section 271- E of the Act. Against the said order, an appeal has been filed by the petitioner along with an application for stay, however, the resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been reduced to an extent on payment made to clear the liablities of the assesse company appears to be in accordance with law and it is permissible. Hence, the question of dealing with cash transaction does not arise. In the present case, the Assessing Officer concerned, proceeded, as if, there was a cash transaction, and therefore, construed the entire repayment of loan by M/s. Shakti Sugar Ltd. as income of the petitioner and proceeded in accordance with law in terms of the Income Tax Act. 7.2 As discussed above, with regard to the grant of loan by the petitioner to M/s. Shakti Sugar Ltd. and repayment of the same made by M/s. Shakti Sugar Ltd. to the aforesaid three entitiled based on the instructions of the petitioner and as r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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