Anglican India Consultancy Pvt. Ltd. Vs ACIT (ITAT Delhi)
The appeal was filed against the order of the Commissioner of Income Tax (Appeals)-I, New Delhi, for Assessment Year 2011-12, confirming the levy of penalty under Section 271D of the Income-tax Act for alleged violation of Section 269SS.
The assessee had filed its return declaring an income of ₹16,04,765. During assessment proceedings under Section 143(3), the Assessing Officer observed cash deposits and withdrawals in the assessee’s bank account. The assessee explained that cash withdrawals amounted to ₹1,08,45,348, whereas cash deposits were ₹74,25,348. It submitted a cash flow statement showing that whenever there was a shortfall in day-to-day business expenses, the Director, Shri Randeep Singh, provided cash through his running account titled “Due to Director.” The source of the Director’s cash was explained as agricultural income, withdrawals from his proprietary concern, and withdrawals from his savings bank account. The cash flow statement reflected cash receipts of ₹27 lakh from the Director and cash repayments of ₹26 lakh during the year.
The Assessing Officer concluded that the company had accepted cash loans or deposits of ₹27 lakh from its Director and repaid ₹26 lakh in cash, thereby violating Sections 269SS and 269T. The matter was referred to the Additional Commissioner for initiation of penalty proceedings under Section 271D, and a notice was issued to the assessee.
