2016 (8) TMI 655

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..... 2011, assessing its income at Rs. 7, 31, 501/-. 2. Solitary ground of appeal is about levy of penalty u/s. 271D of the Act. The brief facts of the case are that the assessee had taken a loan of Rs. 75 lakhs from Kotak Mahindra Bank Ltd. for purchase of a property, that it had to pay monthly installment (EMI) of Rs. 2, 90, 521/-, that it had already handed over post dated cheques for the EMI for the entire tenure of the loan to the bank which the bank was presenting on the due dates and collecting the EMIs. In July 2007, when the EMI cheque of Rs. 2, 90, 521/-for the said month was presented in the bank account, there was balance of Rs. 2, 27, 494. 28 was only available in the account of the assessee. In view of the same, the Assessee C....

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...., the assessee preferred an appeal before the First Appellate Authority (FAA). Before him, it was contended that there was insufficient balance to the extent of Rs. 85, 000/- to pay the EMI, that it was forced to take a cash loan to meet the shortfall and to tide over the crisis and avoid defaulting loan instalment/late payment charges and penalty, that any default in loan instalment would have also dented the credit of the assessee and would have impacted its business prospects, that the cash loan was taken from the shareholder of the company who is regularly assessed to tax. The assessee relied upon certain case laws. After considering assumption of the assessee and the penalty order, the FAA held that the assessee had taken loan in cash ....

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....d upon the cases of Triumph International Finance (I) Ltd. (345ITR270); Smt. Dimpal yadav Income tax appeal No. 174 of 2015 dated 21. 8. 2015;Lodha Builders Pvt. Ltd. (ITA476/M/14 dated 27. 06. 2014;M/s. Shreepati Developers & Builder Ltd. (ITA No. 7197 & 7198/M/2014, dt. 15. 04. 2015;Zodiac Developers Pvt. Ltd. (ITA No. 31/M/2011 dt. 10. 10. 2014); Sanju Kothari (ITA No. 3790/M/2013 dt. 04. 3. 2016); M/s. R. K. & Co. Pvt. Ltd. (ITA 2218/M/12 dt. 31. 7. 2013); Mrs. Rupali R. Desai (088ITD76);Bhagwati Prasad Bajoria(HUF) (263ITR487) and Kum A. B. Shanthi (255 ITR 258). The Departmental Representative(DR)supported the order of the FAA. 5. We have heard the rival submissions and perused the material before us. We find that in the case of Tr....