2005 (10) TMI 33

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....public for the purpose of real estate and property development business. The assessment order under section 143(3) read with sections 158BD and 158BC of the Income-tax Act (hereinafter referred to as "the Act") for the block period was passed on December 29, 1998. The Assessing Officer found that there was contravention of the provisions of section 269T of the Act by the firm in repaying deposits with interest to the public, for which, penalty proceedings under section 271E of the Act were initiated. On appeal at the instance of the assessee, the Commissioner of Income-tax (Appeals)-VI, Chennai allowed the appeal and cancelled the penalty levied by the Assessing Officer holding that the assessee had made reasonable cause for repayment of lo....

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....there were thirteen such instances for the assessment year 1996-97 and six instances for the assessment year 1997-98; in the case of Kasi Credit & Consultant Corporation, there was one instance of violation for the assessment year 1996-97 and two instances for the assessment year 1997-98 and in the case of Kasi Credit Corporation, there were two instances of contravention of the provisions of section 269T of the Act. Penalty proceedings under section 271E of the Act were initiated in respect of all the seven firms for all the assessment years by the Joint Commissioner of Income-tax by issuing show-cause notice. The assessees' representatives appeared before him. After taking several adjournments, details were furnished by the assessees o....