Case Law Details
JICE Academy for Excellence Pvt. Ltd Vs NFAC (ITAT Bangalore)
ITAT Bangalore held that levy of penalty u/s 271D, for violation of provisions of section 269SS of the Income Tax Act, is unwarranted as the loan was advanced by the Executive Directors to the company in cash to meet the urgent requirements of the company.
Facts-
During the scrutiny proceedings, the Assessing Officer noted the cash loan received from the 2 Directors viz. Akhil Anand Biraj of Rs. 14,62,470/-and K V Kanaghavi of Rs. 27,00,000/-. Hence, as per Sec. 271D of the Act, the Joint Commissioner of Income Tax, Range-4(1), Bangalore initiated penalty proceedings u/s 271D of the Act for contravention of Sec. 269SS of the Act vide his notice dated 27/12/2019. The penalty proceeding u/s 271D of the Act was subsequently transferred to National Faceless Assessment Centre, Delhi.
The Assessing Officer of National Faceless Assessment Centre, Delhi passed the order u/s 271D of the Act on 27/01/2022 by levying the penalty of Rs. 4 1,62,470/- which is equivalent to the amount received from the Directors of the Company.
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