In the instant case, the transaction in question, was not cash transaction. It was merely book entries. The CIT(A) has called Remand Record from the AO, who vide report dated 05.01.1999, confirmed that the transaction in question, by mentioning that no cash was involved. There was only adjustment entries. When that it so, then there is no violation of Section 269SS/269T of the Act. No addition is made in quantum appeal.
(Allahabad High Court)
INCOME TAX APPEAL No. – 242 of 2005 [Assessment Year – 1994-95]
Appellant :- The Commissioner Of Income Tax Respondent :- M/S Saurabh Enterprises
Counsel for Appellant :- S.C.
Counsel for Respondent :- A. Bansal,S.K. Garg
Hon’ble Dr. Satish Chandra, J.
Hon’ble B. Amit Sthalekar, J.
The present appeal has been filed by the Department under Section 260A of the Income Tax Act, 1961, against the judgment and order dated 27.01.2005, passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. No. 493/Alld/99, for the assessment year 1994- 95.
The brief facts of the case are that in the instant case, the AO found that there was violation of Section 269SS/269T of the Act. So, he levied the penalties under Sections 271 -D and 271 -E of the Act. The same were cancelled by the CIT(A) and the Tribunal also upholds the same. Being aggrieved, the Department has filed the present appeal.
With this background, heard Sri Dhananjay Awasthi, learned counsel for the Department and Sri Ashish Bansal, learned counsel for the assessee.
After hearing both the parties and on perusal of the record, it appears that in the instant case, the transaction in question, was not cash transaction. It was merely book entries. The CIT(A) has called Remand Record from the AO, who vide report dated 05.01.1999, confirmed that the transaction in question, by mentioning that no cash was involved. There was only adjustment entries.
When that it so, then there is no violation of Section 269SS/269T of the Act. No addition is made in quantum appeal.
By considering the totality of the facts and circumstances of the case, we find no reason to interfere with the impugned order passed by the Tribunal. The same is hereby sustained along with the reasons mentioned therein.
In the result, the appeal filed by the Department is dismissed, at the admission stage.
