- In which transactions through log records is intended for extinguishment out-of mutual obligations anywhere between assessee and you may cousin questions regarding class, punishment is not leviable lower than parts 271D / 271E – Lodha Builders (P.) Ltd. v. ACIT [(2014) 34 ITR (Trib.) 157 (Mum.)] Choosing finance and you will costs owing to journal entries is actually struck of the relevant arrangements regarding area 269SS/269T. But not, doing `empty formalities’ off costs and repayments because of the providing / searching cheque to change / square upwards purchases, isn’t intention of specifications out-of section 269SS / 269T when transactions is actually if you don’t bonafide or legitimate. In which impugned log entries when you look at the respective instructions was in fact completed with examine to boost money from aunt questions, so you’re able to assign receivable one of sis concerns, to regulate otherwise import balances, to help you combine expense and also to right clerical problems, an such like., and it was not matter-of cash that any of impugned transactions was geared towards low-commercial explanations and you can additional normal providers operations, though there is violation away from arrangements out of Ss. 269SS/T, penalty wasn’t leviable.
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These types of reports allegedly contains entities of money invoices and money repayments surpassing Rs
If or not REOPENING Of Testing Under Part 147 Of one’s Act You may Be produced To have Ticket Away from Provisions Away from Point 269SS Of your own Operate?
Once the talked about a lot more than, the newest penalty procedures significantly less than area 271D/271E of the Operate are completely in addition to the comparison procedures. However, the latest evaluating manager
No Punishment Lower than Area 271D And you may 271E On the Dollars Invoices And you can Dollars Payments Off Financing More RS
usually do not come up shortly after cuatro/6 many years which have a conjecture one to assessee possess dealt inside cash transactions and therefore has to be verified. Hon’ble Highest Judge out-of Gujarat with one such distinct situation inside the way it is off Strong Recycling Marketplaces versus. DCIT Unique Civil Application Zero. dt. wherein the determining manager enjoys reopened brand new analysis for two explanations, certainly one of which was invited of one’s loan without disclosing the new function out of enjoy in the audit declaration and its particular repayment. This new examining manager has not yet recorded people discovering that income rechargeable to help you tax features escaped evaluation the finest requirements to reopen the fresh testing and has as an alternative known the new imposition of you’ll punishment around area 271D. Since it is held by the a number of judgments of several process of law you to definitely reopening off review cannot be created for mere fishing otherwise rowing inquiries toward mere suspicion, the condition is actually decided in favor of assessee. New assessing manager really needs a belief you to definitely earnings rechargeable to income tax keeps escaped analysis, for which there needs to be specific tangible question which have a live connection to it. Regardless of if no specific time frame might have been provided in the act to own initiating penalty legal proceeding less than point 271D/271E of Act, you’ll say that it’s possible to discover show bring about observe to own towering punishment even with brand new conclusion off 6 age of your own relevant assessment 12 months where purchase into the violation out of Section 269SS/269T of Act try achieved. not, adopting the choice of Gujarat Highest Courtroom because more than, where analysis from allowed/payment out of financing/deposit/improve is to be generated through the strenuous setting from reopening of tests not as much as section 147 of one’s Act, it cannot performed with no a different reason to think followed closely by support real issue your assessee has contravened the fresh new specifications off Part 269SS/269T of your Operate.
Assessee transporter are involved with company off plying out-of vehicle and you may had not managed people regular books regarding account. A survey lower than point 133A try conducted in the business premise of one’s assessee. This new assessment are complete based on records impounded. 20,000/- out-of certain individuals which can be accepted because cash loan dumps invoices and cash financing deposits money. The fresh new skilled expert, we.elizabeth., More Administrator of money Income tax invoked the new arrangements of parts 271D and you can 271E to possess so-called infringement from parts 269SS and you will 269T and imposed penalty off Rs.21,82,000/- and Rs.16,70,500/- respectively.