Case Law Details
Case Name : Deputy Commissioner of Income-tax, Circle-5 Vs Akhilesh Kumar Yadav (ITAT Agra)
Related Assessment Year : 2006-07
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IN THE ITAT AGRA BENCH
Deputy Commissioner of Income-tax, Circle-5
versus
Akhilesh Kumar Yadav
IT Appeal Nos. 462 and 463 (Agra) of 2009
[Assessment Year 2006-07]
October 23, 2012
ORDER
Bhavnesh Saini, Judicial Member
Both the appeals by the Revenue in the cases of different assessees are directed against different orders of ld. CIT(A)-II, Agra dated 24.09.2009 for the assessment year 2006-07, canceling the penalty u/s. 271D of the IT Act.
2. It is stated by the ld. Representatives of both the parties that the facts and circumstances of both the cases are same. Both the part...
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Case Regarding disallowance of payment u/s 40A (3) made to suppliers through the saving accounts of employee and initiation of penalty u/s 269SS
Sir/madam
The facts of the case are that prop. of the firm is lady and her two sons are employee in the firm. Firm made purchases through broker . payment to broker is made by cash, neft and DD. All the cash payments are made within limit i.e. less than r 20000/- but the NEFT & DD payments are made through the saving accounts of the employee (i.e. sons). When payment is to be made to supplier then cash withdrawn from firm by making entry for paid to creditor and deposited in the saving account of Employee and from saving account it is transferred to supplier of firm by way of NEFT/DD. The proprietor’s health is not good, she is bed ridden at that time and latter on died. The proprietor has no bank account. All the payments made to supplier of the firm are enrooted through the saving accounts of the employees(sons) and the cash deposited in the saving accounts of employee are shown in cash book of the firm as payment to supplier. Can the ITO disallow cash deposited in the saving account of the employee u/s 40A(3) these payments are approximately 40,00,000/- in the Asstt year 2010-11. Please quote case laws
I think no penalty is initiated u/s 269SS by the I T Department if the loan is treated as bogus or not genuine. In such cases the loan amount is added to total income as concealed income u/s 68 of the IT Act. Therefore, if the ITAT or higher courts are of the view that no penalty can be levied under section 269SS of the IT Act, then such view makes section 269SS as redundant.