TaxTMI 
TaxTMI 
2019 (5) TMI 942
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.... from the Members and lent only to the Members who are employees of the Company, principle of mutuality was applicable. For the assessment year 2007- 08, it was submitted that the Petitioner filed the return of income on 10.3.2008 declaring a total income of Rs. 2,59,830/- and the assessment was completed vide order dated 23.12.2009 accepting the return filed. Subsequently, action was initiated by the Addl. Commissioner, Income tax as per order u/s 271D of the Act dt. 17.08.2011 imposing a penalty of Rs. 74,56,185/- on the ground that "a major chunk of the fixed deposits are received in cash, in violation of provisions of Section 269SS". 2.1 Against the said order, appeal was filed before the CIT (A). The learned CIT (A) confirmed the levy....
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....tives or friends and it is easy for the so-called lender also to manipulate his records later to suit the plea of the tax-payer. The main object of section 269SS was to curb this menace." 2.4 It was submitted by the Ld. AR that from the above it was clear that the object of 269SS is to ensure that the taxpayer is not allowed to give false explanation for his unaccounted money as enunciated by the Supreme Court. Therefore, according to the Ld. AR, in cases where there is no question of unaccounted money being received in the guise of loan, the recipient is not be thrust with the burden of penalty u/s 269SS. In the present case, the petitioner had furnished complete details regarding name and address of the payer, employee badge number and a....
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....e Society is also an income tax assessee and the department has no case that these loans are not genuine, (vii) Section 269 T is not attracted. 2.5 Thus, It was submitted that non-consideration of all the above facts is an apparent mistake on the face of the record. The Tribunal has not considered either the legal issues /facts, which is a mistake apparent on the face of the record, which has to be rectified u/s 254 (2) of the Income Tax Act. It was therefore prayed that the le Tribunal may be pleased to kindly rectify the mistakes apparent on the face of the record and pass appropriate orders allowing the appeal. 3. The Ld. DR submitted that there is no mistake apparent from record so as to rectify the order of the Tribunal. 4. We have ....