Case Law Details
Sri Sai Balaji Gas Cylinder Pvt. Ltd. Vs ACIT (ITAT Chennai)
ITAT Chennai held that penalty u/s 271D and 271E of the Income Tax Act duly leviable as reasonable cause for accepting loans and advances in cash in contravention of provisions of Sec.269SS & 269TT not explained.
Facts- During the course of assessment proceedings, the AO noticed that the assessee company has accepted loans from Mr.M.Muruganandam, Managing Director of the company in contravention of sec.269SS of the Act. AO further noted that the assessee had also re-paid loans in cash to Mr.M.Muruganandam in contravention of provisions of Sec.269TT of the Act. Accordingly, the Addl. CIT, initiated penalty proceedings u/s.271D & 271E of the Act for contravention of provisions of Sec.269SS & 269TT of the Act.
The penalty so imposed was sustained by CIT(A). Being aggrieved, the present appeal is filed.
Conclusion- Held that the justification given by the assessee for receiving loans & advances in cash from its Managing Director is unsubstantiated. Further, the assessee had also repaid loans & advances in cash in huge amount on various dates and could not explain why loans have been repaid in cash. Therefore, we are of the considered view that the assessee could not explain the reasonable cause for accepting loans & advances in cash in contravention of provisions of Sec.269SS & 269TT of the Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
