Appeal Dismissed for Penalty Imposition on Cash Balances from Family Members

The appeal against the penalty imposition under sections 271D and 269SS for the assessment year 2007-08 was dismissed by the Tribunal. The Tribunal found that the amounts received were from family members and represented cash balances belonging to them, as recorded in the assessee's books. Citing a previous case, the Tribunal upheld that the penalty should not be imposed. The appellant's counsel could not confirm if the precedent case had been challenged. As a result, the revenue's appeal was not admitted, and the connection application was disposed of as moot.

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Issues involved: Appeal against the judgment of the Income Tax Appellate Tribunal regarding penalty imposition u/s 271D read with Section 269SS for the assessment year 2007-08.

Summary:
The main issue in this case was whether the penalty imposed should be upheld or not. The Tribunal found that the assessee had received amounts from family members and explained that these were cash balances belonging to different family members, recorded in the assessee's books of account. The Tribunal noted that a similar issue had been decided by a Coordinate Bench in the case of Tervinder Singh Sethi Vs. Income Tax officer. The penalty amount in question was slightly over Rs. 10 lakhs. The appellant's counsel could not confirm if the judgment in the case of Tervinder Singh Sethi had been challenged. Considering the circumstances and the precedent, the appeal of the revenue was not admitted and was dismissed. Consequently, the connection application was also disposed of as it had become infructuous. All parties were directed to act on a signed photocopy of the order.

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