SulthanBathery Service Cooperative Bank Limited Vs JCIT (ITAT Cochin)
ITAT Cochin held that imposition of penalty u/s. 271D and 271E of the Income Tax Act in consolidated manner is unjustified as AO has to point out each entry where such acceptance or repayment is Rs. 20,000/- or more.
Facts- The assessee is a Co-operative Bank. Issue involved, herein, is that penalty u/s. 271D and 271E of the Income Tax Act was imposed on the assessee.
The amount of cash deposited which was accepted by the assessee in the assessment year under consideration at Rs.1,02,14,54,585/- and levied penalty u/s 271D of the Act equal to the amount of loan or deposit accepted by the assessee at Rs.1,02,14,54,585/- u/s 271D of the Act.
Further, it is alleged the total repayment made in cash in violation of section 269T of the Act at Rs.1,16,57,50,274/- and penalty levied u/s 271E of the Act as equal to the amount of loan or deposit made in violation of section 269T of the Act.
Being aggrieved, the present appeal is filed.
Conclusion- Held that the ld. AO invoked the provisions of section 271D & 271E of the Act in a consolidated manner without specifying amount of each aggregate loan of Rs.20,000/- or more or aggregate repayment of loan of Rs.20,000/- or more in cash, which is not correct. The ld. AO has to bring on record each aggregate loan of Rs.20,000/- or more and repayment of each aggregate loan of Rs.20,000/- or more and he cannot make levy of penalty u/s 271D & 271E of the Act in a consolidated manner. In other words, he has to point out each entry where such acceptance or repayment is Rs.20,000/- or more.
