TaxTMI 
TaxTMI 
2020 (3) TMI 882
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....nce, the Tax Appeal No.98/2020 is treated as the lead appeal. 3. This Tax Appeal under Section 260A of the Income Tax Act, 1961 (for short the "Act 1961") is at the instance of the Revenue and is directed against the order dated 12.07.2019 passed by the Income Tax Appellate Tribunal, Ahmedabad in ITA No.216/SRT/2017 for the Assessment Year 2013-14. 4. The facts giving rise to this appeal may be summarized as under: 4.1 A search action under Section 132 of the Act1961 was carried out on 18.02.2014 in the group cases of Creative Trendz Group of Surat. 4.2 During the course of the search action few incriminating documents were recovered and seized from the residence of one Shri Piyush Ghanshyam Modi, Residing at: Surat. The documents seize....
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....satisfied with the order passed by the CIT(A) went in appeal before the Appellate Tribunal. The appellate Tribunal dismissed the appeal preferred by the Revenue on the ground of low tax effect without going into the merits of the matter. It appears that the JCIT, Central Range, Surat took the view that the assessee had repaid the loan amounting to Rs. 2,18,00,000/in contravention of the provisions of Section 269T read with Section 271 of the Act 1961. In such circumstances, the JCIT, Central Range, Surat, levied penalty under Section 271E of the Act. 4.7 Being aggrieved by the penalty order made under Section 271E of the Act 1961, the assessee preferred an appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee. 4.8 Being ....
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....Section 271E of the IT Act holding that presumption of Section 132(4A) as well as Section 292C of the IT Act is not available in the case of the assessee ignoring the corroborative evidence seized from third party? 6. We straightway go to the findings of the fact recorded by the Appellate Tribunal in its impugned order: "8. We have heard the rival submissions and perused the material available on record. We have gone through the assessment order and penalty order in the assessment years under consideration. It is observed that the addition of interest payment under Section 69C was made on account of documents seized from third party which were reflected some cash loans transactions i.e. receipts and payments. However, these docume....
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.... in the seized material recovered from third party. Therefore, considering the totality of the facts, we find no reason to deviate from findings recorded by the Ld.CIT(A). Accordingly, the appeal of the Revenue in respect of penalty under Section 271D and 271E is dismissed. Consequently, all the grounds of appeal of the Revenue as reproduced above are dismissed." 7. Thus, the learned Tribunal took into consideration the following aspects: A. The addition of interest payment under Section 69C of the Act 1961 was made on the basis of the documents seized from a third party. B. Such documents seized from the third party reflected loan transactions in cash. 8. The Tribunal took notice of the fact that such documents were not found or re....