2014 (12) TMI 850

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....Advocate ORDER Sanjiv Khanna, J (Oral) ITA 221/2003 This appeal by the Revenue under Section 260A of the Income Tax Act, 1961 ('Act' in short) was admitted for hearing vide order dated 21.09.2004 on the following substantial question of law:- "Whether in the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in law in deleting the penalty imposed under Sectio....

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.... of Income Tax (Appeals) sustained the penalty in respect of book entry of Rs. 33,75,842/- but restored for fresh examination, the entry relating to K.N Bhalla, in view of the submission that the debit entry in the name of K.N Bhalla did not create any liability towards any new loan or deposit. The submission was that it was a mere transfer entry with name of K.N Bhalla being substituted for M/s Q....

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....VI vs. Worldwide Townships Project Ltd. [2014] 367 ITR 433 (Delhi). In the said decisions, in view of the language of Explanation to Section 269SS, it has been held that the provision would apply to loan or deposit of money, and not mere formal entries resulting in debit or credit. Other reasons and grounds have been elucidated. 6. In view of the aforesaid legal position, the question of law has ....

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.... noticing the fact that there were two cross entries in the case of M/s Quality Clothiers and K.N Bhalla and the amount outstanding in the name of M/s Quality Clothiers was treated as outstanding against K.N Bhalla. The Assessing Officer held that this amounts to violation of Section 269SS and penalty of equal amount i.e. Rs. 20,00,000/- should be imposed. 10. The aforesaid penalty was deleted by....