2024 (8) TMI 341

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....o.1289/Chny/23 whereas penalty levied u/s 271E is subject matter of ITA No.1290/Chny/2023. 2. The Ld. AR advanced arguments on legal grounds as well as on merits which have been controverted by Ld. Sr. DR. Having heard rival submissions and upon perusal of case records, our adjudication would be as under. Penalty Proceedings 3.1 Facts leading to penalty are that Ld. AO framed an assessment u/s 143(3) on 30-12-2019 making certain disallowances in the hands of the assessee. During the course of assessment proceedings, it transpired that the assessee received cash loans from certain directors and related concerns. Certain loans were also repaid in cash. The assessee submitted that the cash was received from the directors to meet the u....

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.... was rejected in terms of CBDT Circular No.9/DV/2-016 dated 26-04-2016 directing that time barring date for initiation of penalties u/s 271D & 271E would start from show-cause notice issued by JCIT. Accordingly, Ld. JCIT imposed penalty of Rs.36.16 Lacs vide its order dated 29-11-2022. Similar penalty was levied u/s 271E on same date. 3.4 During appellate proceedings, the assessee drew attention to various factual errors and assailed the penalty on multiple grounds by relying on various judicial decisions. One the argument was that the assessee was carrying on construction at remote sites where banking facilities were not available. The directors provided funds at the site for immediate needs for the labors payments and other expenses at....

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....opriate authority for imposition of impugned penalties. The Ld. JCIT issued show-cause notice to the assessee on 26-05-2022 and completed penalty proceedings on 29-11-2022 which is well within the prescribed statutory limit. The argument that there was inordinate delay between the date of reference and issue of show-cause notice is to be rejected considering the fact that substantial period falls within lockdown situation arising out of Covid-19 Pandemic and therefore, this period is to be excluded for all limitation purposes. Therefore, this argument also does not find favor with us. 6. Coming to the merits of the case, it is undisputed fact that the assessee is in the business of construction of resorts apartments at Courtallam whereas....