• Where transactions as a result of log entries try aimed at extinguishment regarding shared debts between assessee and you can sis questions away from category, penalty is not leviable not as much as areas 271D / 271E – Lodha Builders (P.) Ltd. v. ACIT [(2014) 34 ITR (Trib.) 157 (Mum.)] Getting funds and you can repayments by way of record records is actually strike of the relevant arrangements from section 269SS/269T. However, doing `blank formalities’ away from costs and repayments by providing / acquiring cheque so you’re able to change / rectangular upwards purchases, is not intention of terms of area 269SS / 269T whenever transactions is if not bonafide or genuine. In which impugned diary entries in particular guides was indeed done with examine to raise money from sibling inquiries, in order to assign receivable certainly one of aunt issues, to regulate or transfer balance, so you’re able to combine costs also to correct clerical problems, etc., plus it was not matter of cash you to any kind of impugned transactions are geared towards low-industrial explanations and you can additional normal team businesses, though there was ticket of terms off Ss. 269SS/T, punishment wasn’t leviable.

Such reports presumably consisted of entities of cash invoices and money costs exceeding Rs

If REOPENING Out-of Research Around Part 147 Of one’s Operate You will definitely Be produced Getting Ticket Of Terms Of Area 269SS Of the Act?

Since discussed above, the new penalty procedures lower than section 271D/271E of one’s Work are completely in addition to the comparison process. However, the brand new examining officer

Zero Punishment Below Section 271D And 271E With the Dollars Invoices And you may Cash Repayments Of Loan More RS

dont appear just after 4/6 many years which have a speculation that assessee have worked from inside the dollars transactions hence needs to be verified. Hon’ble Higher Judge regarding Gujarat which have one distinct thing into the the situation off Deep Recycling cleanup Opportunities vs. DCIT Unique Civil Application No. dt. where evaluating administrator has actually reopened the newest assessment for two explanations, certainly that has been welcome of your mortgage rather than exposing the latest function out-of greeting regarding the review statement and its particular fees. The brand new determining administrator hasn’t registered one Millen payday loan and cash advance discovering that earnings chargeable in order to income tax enjoys fled evaluation which is the perfect requirements so you’re able to reopen new investigations and also instead referred to the brand new imposition away from you can easily penalty around point 271D. As it is stored by group of judgments of several process of law one to reopening from analysis can’t be made for simple fishing or rowing issues for the simple suspicion, the issue try decided in support of assessee. The evaluating manager has to have a conviction one to income rechargeable so you’re able to income tax has escaped review, by which there must be certain real question having a live link with they. Regardless of if zero particular time frame might have been considering along the way to possess introducing penalty process not as much as part 271D/271E of one’s Operate, you’ll be able to point out that it’s possible to found tell you cause notice having imposing penalty despite brand new conclusion off 6 decades of your own associated analysis season in which purchase within the ticket out of Part 269SS/269T of the Work are carried out. Although not, pursuing the choice from Gujarat Higher Legal as the more than, where in fact the scrutiny regarding welcome/fees regarding loan/deposit/advance is usually to be produced from strenuous mode from reopening of examination under part 147 of the Operate, it can’t be achieved devoid of another reason to trust followed closely by help concrete issue the assessee possess contravened the latest specifications of Part 269SS/269T of Work.

Assessee transporter was engaged in providers out of plying out of vehicle and had not handled one normal guides out-of account. A survey lower than section 133A try presented on in the company properties of assessee. The latest review is actually completed on the basis of documents impounded. 20,000/- of certain individuals being accepted given that cash advance deposits invoices and money financing deposits payments. The newest competent expert, we.elizabeth., Even more Commissioner of cash Taxation invoked the new provisions of areas 271D and you can 271E to own so-called infringement regarding areas 269SS and you may 269T and imposed punishment from Rs.21,82,000/- and you will Rs.sixteen,70,500/- correspondingly.