2011 (10) TMI 612

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....ER 1. These two appeals filed by the assessee are against two separate orders, dated 25.8.2009 and 26.8.2009 of the CIT (A)-VII, Mumbai for the assessment year 2005-06. Since in both the appeals, facts are similar, they are disposed of by this common order for the sake of convenience. 2. In this appeal, the assessee's grievance is against CIT(A)'s confirmation of penalty of Rs. 5,29,83,400 l....

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....e Ltd against the advance taken and M/s. Indsec invoked the shares and credited the account of the company. Accordingly, the assessee debited the account of Indsec. It was also submitted that in the case of the above named clients for earlier years and in the case of group companies, the Tribunal also on similar facts, levied the penalty under section 271E. In view of this, before the AO, the asse....

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....the case of VN Parekh Securities Pvt Ltd., - order dated 22.3.2005. Relying on the aforesaid decision, he submitted that the issue is squarely covered in favour of the assessee. 5. Having heard the rival contentions and having perused the material on record, we find that the payment is only by way of journal entry. The repayment has been made through account payee cheque and the transaction ....

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....71D of the Income tax Act, 1961. Act The penalty is levied on the ground that the assessee accepted loans from M/s. Netscape Softwae P. ltd., and Goldfish Computer Pvt Ltd., amounting to Rs. 1,72,83,327 and Rs. 1,72,30,300, respectively other than by account payee cheque or draft in contravention of section 269SS of the Income tax Act, 1961. In response to Assessing officer's query, the assesse....