9911796707
TMI Blog2023 (10) TMI 1472X X X X Extracts X X X X X X X X Extracts X X X X ..... d to by the learned counsel for the petitioner, it is clear that no amount has been passed on by the petitioner either by way of cash or RTGS or any other modes. In these circumstances, this Court is of the view that initiation of penalty proceedings under an impression that 100% cash transaction to the tune of Rs. 41,66,39,600/- had taken place, is not proper and such initiation of proceedings is due to wrongful interpretation of the balance sheet of the petitioner's Company, based on which, the 1st respondent passed the impugned order dated 20.09.2023, directing the petitioner to pay 20% of the outstanding demand and the balance 80% of the demand is stayed till the disposal of the Appeal by NFAC/Appellate Authority. Since this Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declaring the total income at (Rs. 60,909/-). The petitioner's case was selected for scrutiny, ultimately, resulting in initiation of penalty proceedings under Section 271 D of Income Tax Act, 1961 dated 12.02.2022 against the petitioner. Challenging the said penalty proceedings, the petitioner filed Writ Petitions before this Court in W.P.Nos. 5911 and 5914 of 2022 and this Court vide order, dated 16.03.2022 set aside the penalty proceedings and remanded the matters for reconsideration. ii) The respondent, in consequence of the said direction issued by this Court, issued a fresh notice to the petitioner in regard to the penalty proceedings initiated in terms of Section 271 D of I.T. Act and the petitioner, on receipt of such notices, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the Balance Sheet as on 31.03.2018, pertaining to the financial year 2017-18, wherein, in respect of the Column 'Non-Concurrent Liabilities, the other Long Terms Liabilities is mentioned as Rs. 41,66,39,600/-, however, the respondent under an impression that there was a cash transaction made by the petitioner to the extent of said amount, imposed penalty at 100% against the petitioner. The learned counsel further submitted that aggrieved against the penalty proceedings, the petitioner preferred appeal before NFAC, along with a Petition for Stay, however, the respondent granted a conditional stay, by directing the petitioner to pay 20 % of the disputed tax. Therefore, the learned counsel assailed the impugned order by contending th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same does not call for interference. 5. Heard the learned counsel appearing for the petitioner and the learned Senior Standing counsel appearing for the respondents and perused the materials available on record. 6. In the instant case, it is seen that demand was raised by the respondent-Department to the extent of Rs. 41,74,41,800/-. The said demand was raised under an impression that there was cash transaction made by the petitioner to that extent of the said amount, which is not in consonance with the provisions of Section 269 SS of the Act, and hence, 100% penalty has been imposed against the petitioner. According to the petitioner, there is no liability, inasmuch as, no cash transaction has taken place and to substantiate his contention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Authority. Since this Court is of the above view that as there was no cash transaction and no amount was transferred, therefore, the impugned proceedings, based on the audited balance sheet and asking the petitioner to pay the deposit of 20% is not proper and also not justifiable. Therefore, this Court directs the Appellate Authority to take the Appeal on file without insisting upon any deposit and to consider the aspect of transfer of cash by taking into consideration of the entry made under the head Notes. 4 and Note 7.1 in the Balance sheet of the petitioner-Company as on 31.03.2018 (where in, the investment made in shares, the amount is yet to be paid, and this aspect is clear from the fact that an equivalent amount is shown in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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