TaxTMI 
TaxTMI 
2024 (6) TMI 406
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.... and balance Loans are accepted as genuine and each Loans less than Rs. 20,000/- considering above facts and circumstances no penalty u/s 271D can be levied and same be deleted. 2.2 The Joint CIT 27(1) as well as CIT(A) NFAC has taken stand contrary to the finding in the Assessment order passed u/s 143(3) read with section 147 order dated 22nd March, 2016 3. The Learned CIT(A) NFAC has erred in dismissing appeal without considering the request for adjournment as well as without giving proper opportunities and without considering the finding given in the assessment order and considering all these circumstances penalty levied Rs. 24,50,000/ - u/s 271D be deleted. 2. The brief facts of the case are that, the assessee is an individual derives income from salary, house property and business. The assessee has filed the return of income for the A.Y 2007-08 on 23.04.2009 disclosing a total income of Rs. 2,71,136/-, subsequently the assessee has filed the revised computation of income with the total income of Rs. 3,41,590/-.Whereas the Assessing Officer (AO) has received information from the Investigation Wing, Mumbai that the assessee has made cash deposits of Rs. 26,9....
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.... received loan of Rs. 18,50,000/- and was later adjusted towards sale consideration in the same financial year, therefore the AO is of the opinion that there is violation of provisions of Sec. 271D of the Act. Similarly in respect of cash deposits of Rs. 6 lakhs, where the assessee has obtained loans from the various parties each below Rs. 20,000/- and since no information was filed with respect to the identity, creditworthiness and evidence of the parties, the A.O. invoked the provisions of Sec. 269SS of the Act and has levied penalty of Rs. 24,50,000/- and passed the order u/sec 271D of the Act dated 07.07.2016. 4. Aggrieved by the penalty order, the assessee has filed an appeal before the CIT(A). Whereas the CIT(A) has confirmed the action of the AO and sustained the penalty and dismissed the assessee appeal. Aggrieved by the CIT(A) order, the assessee has filed an appeal before the Hon'ble Tribunal. 5. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the levy of penalty u/sec 271D of the Act overlooking the facts and findings that, the assessee has entered into agreement for purchase of flat and since the deal could not go through due to....
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.... has received the cash and bank payments from the purchaser as per the confirmation of accounts submitted as under: 7. The assessee has received the part sale consideration in cash on different dates i.e on 04.12.2007 Rs. 6 lakhs, 26.12.2007 Rs. 5 lakhs, 29.12.2007 Rs. 1,50,000/-, 31.12.2007 Rs. 5,00,000/- and on 16.01.2008 Rs. 1 lakh and all aggregating to Rs. 18,50,000/-. Further the assessee also received the sale consideration by cheques on 08.01.2008 Rs. 3 lakhs and Rs 1 lakh on 16.01.2008 aggregating to Rs. 4 lakhs. The Ld. AR contentions are that the assessee has received the sale consideration in lieu of agreement of sale and therefore the transaction is totally a sale transaction and not loan. The Ld. AR submitted that the assessee has purchased the flat through agreement of sale which is under construction on 29.05.2007 for a total consideration of Rs. 30,42,000/- which is not disputed. The contentions of the Ld. AR that the provisions of Sec. 269SS of the Act shall not apply in respect of sale transactions were the amounts are received in cash prior to amendment in finance Act 2015 and hence no penalty u/sec. 271D of the Act is warranted. Further when the A.O has made....
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.... and the ratio of judicial decisions, set-aside the order of the CIT(A) and direct the Assessing officer to delete the penalty and allow the grounds of appeal in favour of the assessee. 9. In the result the appeal filed by the assessee is allowed. Order pronounced in the open court on 17.01.2024. ============= Document 1 Kishor Patel 55/2, KARSAN JASA BLDG 7TH ROAD, RAJAWADI GHATKOPAR EAST PAN NO ACWPP7372C Dear Sir/Madam, 45 From Bhalchandra P. Dalvi D-17, 2/12, Tiranga Soc., Sector-25, Juhi Nagar, Navi Mumbai 45 Sub: Confirmation of Accounts 1-Apr-2007 to 31-Mar-2008 Dated 1-Apr-200 Given below is the details of your Accounts as standing in my/our Books of Accounts for the above mentioned period Kindly return 3 copies stating your I.T. Permanent A/c No., duly signed and sealed, in confirmation of the same. Please note that if no reply is received from you within a fortnight, it will be assumed that you have accepted the balance shown below. Date Particulars 6-Dec-2007 803 @Tilak Nagar-Chembur GO Debit Amount Date Particulars 8,00,000.00 31-Dec-2007 Palace Shiv Sagar Associates OTAR S..N. N....