https://www.taxtmi.com/caselaws?id=459536 The Madras HC quashed penalty proceedings under Section 271D for alleged violation of Section 269SS involving Rs. 41.66 crores. The petitioner argued no cash transaction occurred, claiming the amount represented advances from sister concern for share purchases with liability yet to be discharged. The court found the penalty initiation was based on wrongful interpretation of balance sheet entries, noting no actual cash transfer took place. The HC directed the Appellate Authority to consider the appeal without requiring 20% deposit, examining specific balance sheet notes showing investment amounts yet to be paid with equivalent liabilities, and dispose of the appeal within eight weeks. en-us Fri, 13 Oct 2023 00:00:00 +0530 Tue, 17 Dec 2024 18:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459536 The Madras HC quashed penalty proceedings under Section 271D for alleged violation of Section 269SS involving Rs. 41.66 crores. The petitioner argued no cash transaction occurred, claiming the amount represented advances from sister concern for share purchases with liability yet to be discharged. The court found the penalty initiation was based on wrongful interpretation of balance sheet entries, noting no actual cash transfer took place. The HC directed the Appellate Authority to consider the appeal without requiring 20% deposit, examining specific balance sheet notes showing investment amounts yet to be paid with equivalent liabilities, and dispose of the appeal within eight weeks. Case-Laws Income Tax Fri, 13 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459536