TaxTMI 
TaxTMI 
2003 (2) TMI 417
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....ceedings the Assessing Officer noticed that the assessee had raised the following loans/deposits :- Mrs. Shrimati Agarwal 31-12-1991 JR 5 7,000 1-4-1991 Op. bal. 1,93,751 31-3-1992 Bal. c/d 3,38,936 30-4-1991 B.R. 20 15,000 1-4-1991 JR-4 1,00,000 31-3-1992 JR-9, Intt. 37,185 3,45,936 3,45,936 Mrs. Sunita Agarwal R Bal. c/d 1,18,000 1-4-1991 Op. bal. 1,00,000 31-3-1992 Intt. 18,000 1,18,000 1,18,000 &n....
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....sp; 6,72,633 6,72,633 4. The Assessing Officer while imposing the penalty under section 271D of the Act has observed that these loans had not been received by account payee cheques or drafts but by mere transfer entries. Section 269SS prohibits receiving of loans through modes other than by account payee cheques or account payee bank drafts. Thus these loans have been raised in contravention of the provisions of section 269SS of the Income-tax Act, 1961. 5. On appeal the learned CIT(A) has held that nowhere the DCIT mentioned that the assessee had made any loan or deposit in cash. He has simply stated that the entries were made otherw....
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.... (f)Rini Agarwal (Son's daughter) 8. The assessee (HUF) is carrying on the business in the name of M/s Amar Deep Udyog. Shri Amar Nath Agarwal is the head of the company and had direct control and management of all the business and funds of the family and its members. All the members were owners of the aforesaid family business and were jointly interested in its earnings. Moneys were remitted by account payee DDs of bank, and were credited to the account of M/s. Shivraj & Company in the books of the assessee, HUF, so that there was a credit balance of Rs. 4,84,111 on 31-3-1991 which was accepted by the Income Tax Department as genuine. The aforesaid credit balance had the character of capital investment and not a loan or deposit of m....
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....at money has been defined in the Chambers Twentieth Century Dictionary to mean; coin; pieces of stamped metal used in commerce : any currency used as the equivalent of money. He has further referred to the heading of Chapter XXB of Income-tax Act which reads "requirement as to mode of acceptance, payment or repayment in certain cases to counteract evasion of tax". Thus, he has contended that the intention of bringing the provisions of section 269SS in the Income-tax Act is to counteract tax evasion. Since in the instant case the transactions were genuine, it cannot be said that merely by making transfer entries from one account to another the assessee was trying to evade the tax. A reliance in support thereof has been made to the decision o....
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....e Department has filed the frivolous appeal. However, we do not find any merit in this submission of the learned Counsel when he has argued that if two views are possible the view favourable to the assessee may be accepted. He has further mentioned that the case relied upon by the learned D.R. is distinguishable on facts. Thus, he has concluded that the learned CIT(A) has rightly cancelled the penalty imposed under section 271D of the Act. 10. We have heard the parties and perused the records of the case as well as the case laws referred to above. There appears to be no dispute about the facts of the instant case. The perusal of accounts of M/s Shivraj & Company as appearing in the books of the assessee firm as extracted above would show....