Case Law Details
Sofitra Impex Pvt. Ltd. Vs ACIT (ITAT Delhi)
Introduction: The case of Sofitra Impex Pvt. Ltd. vs. ACIT (ITAT Delhi) revolves around violations of Section 269SS and 269T of the Income Tax Act, which deal with the modes of accepting and repaying certain loans and deposits. The Income Tax Appellate Tribunal (ITAT) Delhi rendered a significant decision on these statutory provisions, and in this article, we provide a detailed analysis of the case.
Detailed Analysis:
1. Background: Sofitra Impex Pvt. Ltd. filed appeals against the penalty orders passed by the Assessing Officer (AO) under Section 271D and 271E of the Income Tax Act for the assessment year 2002-03. The AO noted that the company had received cash amounts from its directors and others, in violation of Sections 269SS and 269T.
2. AO’s Observations: The AO found that the cash book submitted by the company was not authentic, and the Tax Auditor did not report the true facts in the tax audit report. The company initially provided misleading information and later claimed that the cash received was share application money, which was subsequently repaid. The AO concluded that these transactions violated the statutory provisions and imposed penalties.
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