TaxTMI 
TaxTMI 
2017 (12) TMI 1518
X X X X Extracts X X X X
X X X X Extracts X X X X
....2. Briefly the facts of the case are that the assessee filed return of income declaring income of Rs. 16,04,765/-. The Assessing Officer passed the assessment order under section 143(3) vide order dated 27th February, 2014 determining the total income at Rs. 49,86,116/-. The Assessing Officer in the assessment proceedings observed that there are cash deposits and withdrawals from the bank account of the assessee. The assessee explained that total withdrawal was Rs. 1,08,45,348/- as against the cash deposits of Rs. 74,25,348/-. Further, the assessee submitted cash flow statement in which it has been indicated that wherever there was a short-fall in day-to-day expenses, same was met by the Director, Shri Randeep Singh, through his running acc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....5.348. Hence withdrawals are much in excess of Deposits. Further we had submitted, a cash flow statement in which we had indicated that wherever there was a shortfall in day to day expenses that was met by the Director Randip Singh through a running account viz. Due to Director by way of Cash Deposits. Finally, the said amount was also repaid as the cash situation improved back to the Director by way of withdrawals. Further, as per the Companies act, under the Companies (Acceptance of Deposits) Rule under rule 2(b) (ix), deposit does not include any amount received from a Director or a Share-holder of a Private Limited Company, Therefore the transaction between the Company and the Director is not a Loan or Deposit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e facts of the case. In this case, it has been submitted that the cash received by the assessee from its Director was to meet day to day expenses and the same has been linked with the current account. 6.1) Explanation of the assessee is not acceptable. As a normal business practice, the expenses are met out of the available cash in hand or bank balances. The funds in such accounts are arranged either out of sales or loans taken to meet such obligations. Therefore, the funds obtained from the director in cash and introduced in the cash book are clearly by way of loan taken. It is not a case where the funds received from the director have simply been booked in the cash book, remained unutilized and repaid in cash. In tine instant cas....
X X X X Extracts X X X X
X X X X Extracts X X X X
....C) held as under :- " For the assessment year 1992-93, the assessment order was passed on the assessee on February 26,1996, ex parte. While framing the assessment, the Assessing Officer observed that the assessee had contravened the provisions of section 269SS of the Income-tax Act, 1961, and because of this the Assessing Officer was satisfied that penalty proceedings under section 271D of the Act were to be initiated. On appeal, the Commissioner (Appeals) by order dated December 5, 1996, set aside the assessment order with a direction to frame the assessment de novo after affording adequate opportunity to the assessee. Meanwhile penalty under section 271D was levied by order dated September 23, 1996, i.e., before the appeal of the....