Atul N. Shah Vs JCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that imposition of penalty u/s. 269D and 269E of the Income Tax Act without clear finding along with authentic evidence that provisions of section 269SS and 269T are violated is unsustainable.
Facts-
Assessee has preferred the present appeal contesting against imposition of penalty of Rs. 8,25,000/- each under section 271D and 271E of the Income Tax Act. In the present case, the charge of the Revenue was that the assessee had taken loans of Rs.8,25,000/- in cash and repaid the same otherwise than by account payee cheque as required by Statute, i.e. the repayment was found to have been made by bearer cheques in violation of the provision of law.
Conclusion-
Held that with no clear finding based on authentic evidence of the assessee having violated the provisions of Section 269SS and 269T of the Act, we agree with the ld. Counsel for the assessee that there was no case for levy of penalty u/s 269D and 269E of the Act respectively.
Held that the penalty proceedings are quasi-criminal proceedings and the Revenue Authorities are under obligation to record a clear finding which would leave no scope for doubt and which is based on authentic evidence, that the assessee has committed the offence which was liable to be visited with penalty. That penalty cannot be imposed on vague and imaginary evidence.
