AI Drafter 
TaxTMI 
TaxTMI 
2018 (6) TMI 1561
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....nable cause pleaded before him in the correct perspective and as such the order passed by him is arbitrary and unjustified. 3. That the order of the Ld. CIT(A) is erroneous, arbitrary, opposed to law and facts of the case and is, thus, untenable. Grounds of appeal in ITA No. 193-CHD-2018 for A.Y. 2011-12 1. That the Ld. CIT(A) has erred in upholding the imposition of penalty of Rs. 79,55,010/- under section 271D of the Act which is arbitrary and unjustified. 2. That the Ld. CIT(A) has failed to appreciate the reasonable cause pleaded before her in the correct perspective and as such the order passed by him is arbitrary and unjustified. 3. That the order of the Ld. CIT(A) is erroneous, arbitrary, opposed to law and facts of the case and is, thus, untenable. Grounds of appeal in ITA No. 194-CHD-2018 for A.Y. 2011-12 1. That the Ld. CIT(A) has erred in upholding the imposition of penalty of Rs. 22,91,700/- under section 271D of the Act which is arbitrary and unjustified. 2. That the Ld. CIT(A) has failed to appreciate the reasonable cause pleaded before her in the correct perspective and as such the order passed b....
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....under reasonable cause and no entry is un genuine, no entry has been carried with mala fide intention and there is no loss to the Revenue" . The assessee has submitted the bank statements of M/s Ceigall India Ltd. from where the cash was withdrawn by the company, the entry wise clarification was also submitted before the Assessing Officer and reiterated that the cash loans was given due to business exigencies. The assessee contended that penalty is not leviable as the transactions are genuine, the loans were taken for immediate business requirement and there was a reasonable cause for accepting the deposit in cash. 5. The Assessing Officer held that there cannot be any emergency situation on 35 occasions over a period of one year and there was no reasonable cause for withdrawal of the cash from one account and depositing the same in the personal account of the Director and held that since the assessee has not given any evidence to substantiate the claim of reasonable cause and hence penalty is leviable. 6. The Ld. CIT(A) confirmed the penalty on the grounds that the assessee has failed to substantiate its claim even during the appellate proceedings about the reasonableness of....
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.... entry in the current account of the Director maintained by the company. To that extent he argued that the purpose of the enactment of the provision of Section 269SS is to stop the circulation of unaccounted cash or introduction of unaccounted monies into the books by the way of loans which is not the case in the case of the assessee. He further relied on the judgment in the case of CIT Vs. Idhayam Publications Ltd. 163 Taxmann 265 wherein it was held that the payment of monies into current account and withdrawals of monies from the current account in the presence of any other evidence cannot attract provisions of Section 269SS. Further reliance was also placed in the case of S.R. Associated Construction Vs. JCIT (ITAT Kolkata)- ITA No. 209 & 210/Kol/2013 wherein it was held that the transactions between the company and its Director maintained in a current account would neither be categorized as a loan or deposit. 8. The Ld. DR vehemently supported the order of the Ld. CIT(A) wherein the Ld. CIT(A) in (para no. 7) confirmed the order on the ground that the plain provisions of the Act is duly attracted. Regarding the case laws cited by the Ld. AR namely CIT Vs. Idhyam Publication....
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....sessee's are allowed. Order pronounced in the open Court. ============= Document 1 Date of Justification of cash withdrawal Amount Deposit received cash 15,000/- in 15/04/2010 29/04/2010 5,00,000/- 14/05/2010 15,000/- 05/2010 2,00,000/- 12/09/2010 15,000/- य 28/06/2010 50,000/- 06/07/2010 10/07/2010 15,000/- 1,94,335/- 10/08/2010 15,000/- 27/08/2010 5,70,000/- Household withdrawal for the month of April 2010 against the salary for the month of April 2010 Cash withdrawn from the deposited with PNB S/A Household withdrawal for the company and month of May 2010 against the salary for the month of May 2010 company and Cash withdrawn from the deposited with PNB SIA Household withdrawal for the month of June 2010 against the salary for the month of June 2010 Cash withdrawn for payment of HDFC credit card. Cash withdrawn for payment of HDFC credit card. Household withdrawal for the month of July 2010 against the salary for the month of July 2010 Household withdrawal for the month of Aug. 2010 against the salary for the month of ^ug. 2010 ....