TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 1205
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....re as under; "1. That on the facts and circumstances of the case the learned Assessing Officer has erred grossly and not justified in:- A] Imposing penalty of Rs. 2700000/- u/s 271D of the IT Act 1961 for violating the provision of sec 269SS by accepting cash deposit for more than Rs. 200000/- from the parties." B] The order of the Ld CIT(A) is erroneous in facts. C] Any Other Ground that may be abducted at the time of hearing" 4. Now its turn to state the facts of the case briefly are; 4.1 The assessee is an individual and proprietor of M/s Rajshree Traders engaged in wholesale trading of Gutka, Pan masala and separately engaged in sale of various products of Reliance Telecom. For the AY 2010-2011, the appellant filed his return of income [for short "ROI/ITR"] on 30/09/2010 with a returned income of Rs.21,08,410/-. The regular scrutiny assessment u/s 143(3) was completed on 25/03/2013 determining the total income at Rs.34,73,630/- as against the returned income, after making an addition u/s 43B for Rs.13,65,220/- on account of non-payment of VAT expense before the due date of filing ITR u/s 139(1). During the course of aforesaid assessment, Ld assessing officer [for shor....
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....ned unpaid within the due date of filing return of income u/s 139(1) of the Act. The said VAT liability was arrived considering gross liability of Rs.22,54,506/-, VAT credit of Rs.82,981/- and the Rs.8,06,305/- payment of VAT made. Considering aforementioned facts, the Ld AO u/s 43B proposed to disallow the unpaid amount for failure to make good by the due date of filing ITR. The written submission on behalf of the appellant was made by the AR and the accountant of the assessee Shri Ganga Rao, which were considered and finally the assessment was culminated determining total income at Rs.34,73,630/- with the following information to the jurisdictional Joint Commissioner on the subject matter of violation of section 269SS; Sr Name of the Buyers Date of Cash Receipt Amount Rs i Bansilal and Sons Starts 01/12/2009 5,00,000 ii Choudhari Enterprises Starts 01/12/2009 7,00,000 iii Dhapriya Trading Co Starts 21/12/2009 5,00,000 iv Hariom Traders Starts 01/12/2009 5,00,000 v H P & Sons Starts 01/04/2009 5,00,000 Total 27,00,000 6.2 Upon the information from the assessing officer, the Ld JCIT, Range - Bhilai assuming the jurisdiction initiated the ....
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....IT(A) prima-facie considering the facts and submissions in the light of explanation tendered during the appellate proceedings, has pragmatically noted that, a. The appellant was into the business for 2-4 years and admittedly were in receipt of deposits in cash for the urgent need of principal, consequently such deposits were transferred to principal immediately upon their receipt. b. There was no business circumstances or expediency which necessitated the acceptance of deposit in cash and assessee did not lay any material to prove the urgency or urgent necessities arising during the course of his business. c. The assessee even laid no material to substantiate his claim that such deposits were accepted under a contractual obligation. d. The contention of assessee as to such deposits are trading advances against the future sales lacks justification vis-a-via nexus in the absence of any evidential material in substantiating the claim such as copies of sales invoices, copies of delivery challans, vouchers and other corroborating statement or records etc. e. The copies of account of parties laid were deficient so for as basic information of lenders / prospective buyer is conce....
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....e provisions of this section shall not apply to any loan or deposit or specified sum, where the person from whom the loan or deposit or specified sum is taken or accepted and the person by whom the loan or deposit or specified sum is taken or accepted, are both having agricultural income and neither of them has any income chargeable to tax under this Act. Explanation. For the purposes of this section, (i) "banking company" means a company to which the provisions of the Banking Regulation Act, 1949 (10 of 1949) applies and includes any bank or banking institution referred to in section 51 of that Act; (ii) "co-operative bank" shall have the same meaning as assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949); (iii) "loan or deposit" means loan or deposit of money; (iv) "specified sum" means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place. 8. On a bare reading of provision of section 269SS reveals that, it does not per-se restrict any person from accepting loans or deposit exceeding ceiling, but it strictly mandates the mode of acceptance of loans or....