TaxTMI 
TaxTMI 
2020 (3) TMI 966
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....ng none appeared on behalf of assessee in spite of issuance of notice for hearing more than one occasion and Ld. Departmental Representative(DR), was present for the Revenue. In the absence of any appearance by the assessee, the appeal is being disposed of ex parte qua the assessee, after hearing Ld. DR for the Revenue on merits in terms of Rule 24 of the Income Tax Appellate, Tribunal, Rules, 1963. 3. Although in this appeal, the assessee has raised a multiple grounds of appeal but at the time of hearing, the solitary grievance of the assessee was that the penalty u/s 271E amounting to Rs. 3,75,000/- imposed by the Assessing Officer is bad in law. 4. Brief facts qua the issue are that in assessee`s case the assessment was completed u/s 1....
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....the Revenue and perused the material available on record. We note that the assessee is a society registered under Societies Registration Act, 1860 as well as approved as a charitable Institution u/s 12A/12AA of the Act. It files its return of income in the prescribed form, with the prescribed annexure. The return of income of assessee in relation to A.Y. 2011-12 has been subjected to scrutiny assessment u/s. 143(3) of the Act. During the previous year ended 31.03.2011 it had paid a sum of Rs. 375000/- to M/s. Village Welfare Society, constituting a repayment of loan it had taken earlier to meet the financial needs, towards the fulfillment of its object. The entire loan transaction had been duly recorded in the books of account and had been ....
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....ous year ended 31.03.2011, it had paid a sum of Rs. 2,75,000/- to M/s Village Welfare Society (VWS) constituting a repayment of loan it had taken earlier to meet the financial needs, towards the fulfillment of its objects. The details are available by a detailed chart, the entire loan transaction including with the above noted render, had been duly recorded in the books of account and had been accepted as genuine by the Ld. AO. The repayment made in five equal installment of Rs. 75000/- each, had been effected by way of Bank transfer, through Axis Bank, A/c No. 236010100020563 belonging to the above render. As evidence the five corresponding Bank Deposit Slips of Axis Bank Diamond Harbour Branch evidencing the direct deposit to the credit o....
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....ing channel (Ex. 3A to 3E) in order to ensure and fulfill necessary verifiability. You may kindly appreciate just like account payee mode this mode, being equivalent thereto, equally facilitates tracking the flow of money unlike cash transactions. The Govt. of India has recognized that with the banking industry introducing better and more efficient modes of fund transfer in terms of promptness and transparency, there had arisen a need to keep pace with the same. It has accordingly recognized the modes of RTGS, NEFT, EFT, ECS as equally eligible and legitimate modes besides the conventional account payee mode in section 269SS/269T vide Finance Act, 2014. The following preamble will make it selfexplanatory." These days banking system offers a....
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....provided that new section 269SS has been inserted in the Act with a view to counter the device of unaccounted money brought into books of account in the form of loans and deposits in order to explain the deposits. Therefore, by the new provisions such persons are debarred from taking or accepting any loan or deposit. The tribunal therefore opined that the above provisions was introduced to eliminate a proliferation of black money in the society at large and not otherwise. Accordingly keeping in view of theabove circular in the following and many other cases the genuine loan transaction not exactly adhering to the prescribed mode had been provided exoneration from penal consequence. We rely on the judgment of various Hon'ble High Courts in t....