2019 (11) TMI 1778

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....t 'the Act'. Heard both the parties. Case file perused. 2. The assessee's sole substantive grievance raised in the instant appeal challenges both the lower authorities' action imposing u/s 271D r.w.s. 269SS penalty(ies), in case of alleged loans availed from family-members. The CIT(A) has affirmed the impugned penal action as follows:- "3. ‑Decision: All the grounds relate to the lone effective issue of levy of penalty under section 271D of the IT Act of an amount of Rs.250,000 made by the the AO. During the course of assessment proceedings, the AO observed from the Cash book and Ledger for the period 01.04 .2009 to 31.0 3.2010 that the appellant has accepted loans from Renuka Basu and Mala Basu for sums exceed....

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....ted that he has accepted the cash as loans from his mother and his wife on different dates in sums below Rs 20,000 on each occasion. It is also undisputed till date that such sums has been reflected as loans in the creditors 'P&L account. On the face of such overwhelming evidence in the nature of accounting treatment made in both creditors' and recipients' accounts in a congruous manner, the submission of the appellant that the sums were gifts received from wife and mother and was recorded inadvertently as loans by the accountant is not acceptable and without any factual basis. The appellant has also not submitted any evidence as to how the entries in respect of the loans, even though they had been recorded incorrectly by the ac....

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.... of both the parties. It is submitted that the true creditor parties were not having any bank accounts and therefore the sums were received in cash. The appellant has not submitted any corroborating evidence in support of the same. However, I notice that the two creditors ran a partnership firm styled M/s Mala Basu & Renuka Basu and earning business profits. The appellant himself has submitted that the sums received were from the profit earned from the said firm. In such circumstances, circumstantial evidence suggests that the firm must be having its account and the partners must be credited from that account to their individual accounts. However, the appellant has not produced any proof that actually the parties did not have any bank accou....

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.... conduct which fall very much under the mischief of the provision of section 271D of the IT act necessitating imposition of penalty. The undersigned is therefore constrained not to accede to the request of the appellant to give him any relief. The penalty order need not be interfered in the same is confirmed. Appellant's grounds fail. 4. Conclusion: In the result, the appeal is treated as "dismissed." 3. We have given our thoughtful consideration to rival contentions. The assessee has admittedly availed loans in cash from his mother and wife, Smt. Mala Basu and Renuka involving sums of Rs.1.20 lakh and 1.30 lakh; respectively. There is further no quarrel that the same exceed the threshold limit of Rs.20,000/- u/s 26....