2022 (4) TMI 228

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....O) under Section 271E and 271D of the Income Tax Act, 1961 (the Act) concerning AYs 2010-11 and 2011-12, respectively. 2. The assessee has challenged the action of Assessing Officer towards imposition of penalty to Rs. 2 lac levied under Section 271E on the ground that assessee has repaid loan of Rs. 2 lac in cash during the year under consideration in violation of Section 269T of the Act. 3. When the matter was called for hearing, ld. counsel for the assessee submitted that the penalty under Section 271E in the hands of the deceased-assessee is not justified for the reason that allegations of Assessing Officer are not corroborated from the record. It was pointed out that the basis for imposition of penalty is 'loose paper no.98' impounde....

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....inted out on behalf of the assessee, an assessment under Section 143(3) r.w. Section 147 was completed in the instant case, wherein the Assessing Officer has not observed any repayment of loan in cash as alleged in the penalty order. On perusal of the loose paper no.98, we find that no such amount of Rs. 2 lac is borne out in the loose paper, insofar as Financial Year 2010-11 relevant to Assessment Year 2011-12 in question is concern. We also find traction in the plea of the assessee that the loose paper in the instant case are neither signed by the deceased-assessee nor prepared by him and also simultaneously vague and non-descript. The loose paper was purportedly prepared by some nephew of the assessee who was neither identified nor cross....

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.... Assessment Year 2011-12 in question. Likewise, another sum of Rs. 7,50,000 (page 98 of loose paper) is stated to be received on 12.09.2009 i.e. in the F.Y. 2009-10 relevant to A.Y. 2010-11. The assessment order framed under Section 143(3) r.w. Section 147 for AY 2011-12 is also silent on Rs. 7.50 lakhs. It was next submitted that the assessee is since deceased, and therefore, in the absence of any signature from the assessee and in the absence of any particular of the person from whom the money was allegedly received etc., the document i.e., loose paper cannot be conceived more than a flippant or dumb document and thus cannot be relied upon for the purposes of. Ld. counsel thus urged for cancellation of penalty under Section 271D of the Ac....