2014 (5) TMI 388

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....order of the CIT(A) that genuine transactions do not attract provisions of the s. 269SS of the IT Act would make the section redundant and hence not acceptable. 3. The opinion of CIT(A) that mere journal entries do not come within the purview of s. 269SS is unacceptable. 3. Brief facts of the issue are that while finalizing the assessment for the Assessment Years 2004-05, 2006-07 to 2008-09, it was noticed that the assessee had received cash loans of Rs. 1,38,225/- in A.Y. 2004-05, Rs. 2,19,15,374/- in A.Y. 2006-07, Rs. 3,28,32,022/- in A.Y. 2007-08 and Rs. 7,01,38,853/- in A.Y. 2008-09 from M/s. Lahari Green Park in the accounting period concerned, which was utilized for purchase of land. Subsequently, while deleting the addition mad....

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....ry concern, Shri G.Hari Babu. Therefore, the transaction between M/s. Lahari Green Park and the assessee was that of a loan. Since the same was in cash, provisions of sec. 269SS were violated and penalty u/s.271D was leviable. He noted that no explanation could be offered to justify such violation. Accordingly, he proceeded to levy penalties for respective assessment years. 6. On appeal, the CIT(A) observed that since facts are similar in the case of assessee to that of Smt. G. Venkatalakshmi in the A.Y. 2004-05, 2006-07, 2007-08 & 2008- 09, the CIT(A) following the order of the Jurisdictional Incometax Appellate Tribunal in the case of Smt. G. Venkatalakshmi for Assessment Year 2005-06 and also assessment year 2003- 04 stated above, dir....

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....Officer to verify and delete the penalty imposed u/s 271 D of the Act if it is found to be merely an adjustment by way of journal entry. The aforesaid order of the co-ordinate bench was confirmed by the Hon'ble Jurisdictional High Court (supra) holding as under:- "We have checked up the record from which it appears that the learned Tribunal has not decided anything new in this matter. Rather, it relied on its own judgment on an identical issue rendered in a previous case on 9-11-2012. It is said that against the said order, an appeal has been filed. But, we do not find any difficulty to decide the issue as a whole as the relevant findings of the previous judgment have been extracted and there is no dispute that the same is accurate o....