TaxTMI 
TaxTMI 
2019 (7) TMI 1609
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....ITO/ AO) for the A.Y. 2012-13 vide order dated 28.09.2015, under section 143(3) of the Income-tax Act, 1961 (hereinafter 'the Act'). The penalty under dispute was levied by Addl. CIT, Central Range-7, Mumbai under section 271D of the Act vide order dated 28.09.2015. 2. The only issue in this appeal in this appeal of Revenue is against the order of CIT(A) deleting the penalty levied by the additional CIT central range, Mumbai under sections 271 D of the Act for accepting in cash loan/ deposit/ transactions made through journal entries in excess of Rs.20,000/-in violation of the provisions of section 269SS of the Act by holding that the genuineness of transactions made through journal entries is not in doubt and consequently there is a ....
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....ase of the assessee because in view of the decision of Hon'ble Bombay High Court in the case of CIT Vs Triumph International Finance (I) Ltd (2012) 345 ITR 270 (Bom.), the same was delivered only on 12.06.2012 and on that date Hon'ble Bombay High Court has clarified the position that the receiving of deposits or loans through journal entries would certainly be hit by the provisions of section 269SS and 269T of the Act. According to CIT(A), prior to the decision of Hon'ble Bombay High Court in the case of Triumph International Finance (I) Ltd (supra) (date of pronouncement of judgment 12.06.2012) there is a reasonable cause as explained by the assessee. The assessee explained that prior to this date there were decisions in favour of assessee....
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.... Development Pvt. Ltd. in ITA No. 172 of 2015 and others, wherein the Hon'ble High Court exactly on similar circumstances and transactions arising out of the same group of companies deleted the penalty by holding that the assessee has reasonable cause under section 273B of the Act for entering into such transactions through journal entries for the reason that the decision of Hon'ble Bombay High Court in the case of Triumph International Finance (I) Ltd, the same was delivered only on 12.06.2012 and on that date Hon'ble Bombay High Court has clarified the position that the receiving of deposits or loans through journal entries would certainly be hit by the provisions of section 269SS and 269T of the Act as under: - "(d) We find that....
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.... present facts in view of the large number of entries in this case as compared to only one entry in the case before this Court. The test of reasonable cause cannot, in the present facts be determined on the basis of the number of entries. If there was a reasonable cause for making the journal entries, then, the number of entries made, will not make any difference. Besides, on facts, the Tribunal was satisfied with the reasons given by the Assessee for reasonable cause and this finding is not shown to be perverse. Finally, the issue of there being a reasonable cause or not is an issue of fact. No inference of law and / or issue of interpretation is to be made. The decision relied upon by the Revenue in case of Premier Breweries Ltd.(supra) c....