Case Law Details
Vijayaben G. Zalavadia Vs JCIT (ITAT Ahmedabad)
The brief facts leading to the case is this that the assessee, an agriculturist had taken loan from one Berna Gamni Seva Sahakari Mandli Ltd., a cooperative society. It is relevant to mention that the assessee is a member of the said cooperative society. However, out of the sales of the agricultural produce the assessee repaid those laons of Rs. 1,42,000/- during the assessment year under consideration in cash.
The Ld. AO was of the opinion that such action of the assessee is in contravention of the provision of Section 269T and consequently penalty under Section 271E of the Act to the entire amount of Rs. 1,42,000/- was imposed against the assessee which was, in turn, confirmed by the First Appellate Authority. Hence, the instant appeal.
ITAT observed that action for penalty may be permissible only after regular assessment has been framed and since no regular assessment order had been passed in this case, the recourse to penalty proceedings under Section 27IE were not justified.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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