2020 (12) TMI 45

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....he assessment year 2007-08. 2. Brief facts are, the assessee, a resident company, filed its return of income for the impugned assessment year on 31st October 2007, declaring total income of Rs. 2,95,47,968. In the course of assessment proceedings, the Assessing Officer noticed that during the financial year relevant to the assessment year under dispute, the assessee, by way of book entries has availed loan of Rs. . 6,11,778 and re-paid loan of Rs. 2,63,000. According to the Assessing Officer, availing and re-paying loan otherwise than by an account payee cheque/demand draft is in violation of the provisions contained under section 269SS and 269T of the Act. Accordingly, he initiated proceedings for imposition of penalty under section 271....

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.... tax audit report the auditor has observed that certain amount of loan was availed and re-paid through book entries. Relying upon such report of the auditor, the Assessing Officer had initiated proceedings for imposition of penalty under section 271D and 271E of the Act towards alleged violation of provisions of section 269SS and 269T of the Act. Of-course, the Assessing Officer has ultimately imposed penalty under section 271D and 271E of the Act. It is evident, before the first appellate authority, the assessee had furnished a written submission, wherein, the details of loan availed and loan re-paid during the year were furnished along with the supporting evidence, such as, ledger account, bank statements, etc. In the written submissions,....

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....ction 269SS and 269T of the Act. The Hon'ble Jurisdictional High Court in CIT v/s Triumph International Finance India Ltd., [2012] 345 ITR 270 (Bom.), has held that availing and re- payment of loan through book/journal entries would attract provisions of section 269SS and 269T of the Act. However, the aforesaid legal proposition has been further clarified by the Hon'ble Jurisdictional High Court in CIT v/s Ajitnath High-Tech Builders Pvt. Ltd. & Ors., [2019] 412 ITR 316 (Bom.), wherein, it has been held that, since, prior to the decision of the Hon'ble Jurisdictional High Court in Triumph International Finance India Ltd. (supra), which was rendered on 12th June 2012, there was reasonable cause for the assessee to receive and re-....