The reason why was recorded saying that the latest entry out-of greet regarding financing has to be scrutinized in more detail

  • Where deals owing to journal records was geared towards extinguishment out-of mutual debts between assessee and you can cousin inquiries out of category, punishment isn’t leviable significantly less than sections 271D / 271E – Lodha Builders (P Ltd. v. ACIT [(2014) 34 ITR (Trib.) 157 (Mum.)] Acquiring money and you may payments thanks to record records try struck because of the related conditions away from area 269SS/269T. Although not, completing `blank formalities‘ of payments and you will money of the issuing / researching cheque so you’re able to exchange / square up deals, is not aim of provisions from part 269SS / 269T whenever purchases was if you don’t bonafide otherwise genuine. Where impugned diary entries inside respective instructions were completed with examine to raise funds from brother issues, in order to designate receivable among cousin inquiries, to adjust otherwise import balances, so you’re able to consolidate debts and to correct clerical problems, an such like., and it wasn’t case of funds you to definitely any of impugned transactions are intended for non-commercial reasons and you can outside regular business businesses, though there try ticket out-of specifications out of Ss. 269SS/T, punishment wasn’t leviable.

These types of information allegedly consisted of agencies of cash receipts and money repayments surpassing Rs

If or not REOPENING Out of Analysis Below Part 147 Of the Operate Could Be produced Getting Admission From Conditions From Point 269SS Of your own Operate?

Just like the discussed significantly more than, the newest penalty process under part 271D/271E of Work are entirely in addition to the analysis process. However, the fresh determining officer

No Punishment Significantly less than Point 271D And you may 271E To the Cash Invoices And you may Cash Money Out-of Loan Over RS

cannot developed just after 4/six many years having a speculation one assessee possess worked from inside the dollars deals and this needs to be affirmed. Hon’ble Highest Judge of Gujarat with one distinct procedure in the happening away from Deep Recycling Marketplaces versus. DCIT Special Municipal App No. dt. wherein the examining officer possess reopened the fresh new review for 2 reasons, certainly that was greet of your own loan as opposed to exposing the new setting from greet on review declaration as well as fees. The assessing manager has not filed people discovering that earnings rechargeable in order to income tax have escaped research which is the primary requisite so you’re able to reopen brand new testing and contains instead known the brand new imposition of it is possible to punishment around point 271D. As it’s kept by the series of judgments of numerous process of law one to reopening of investigations cannot be designed for simple fishing otherwise rowing concerns towards mere suspicion, the problem was felt like and only assessee. The brand new examining officer should have a belief one income chargeable in order to tax keeps escaped testing, wherein there should be particular real issue having a live connection to they. Though zero certain time has been offered in the process for introducing punishment procedures not as much as point 271D/271E of the Act, you’ll say that you can found show lead to notice getting imposing punishment despite the conclusion of six years of your relevant evaluation seasons where purchase when you look at the violation off Area 269SS/269T of the Operate was carried out. not, adopting the decision from Gujarat High Courtroom while the significantly more than, where the analysis off anticipate/payment regarding mortgage/deposit/advance will be generated from the strenuous form out-of reopening off examination lower than section 147 of one’s Operate, it cannot be performed with no a separate reason to trust followed by help real material that assessee possess contravened the provisions off Part 269SS/269T of one’s Act.

Assessee transporter is actually engaged in business out-of plying out of vehicle and you may hadn’t managed one normal books out-of account. A survey under area 133A try conducted in the firm premises of your own assessee. This new analysis are done based on registers impounded. 20,000/- away from some individuals which can be admitted given that cash advance places invoices and cash loan places costs. New skilled expert, i.age., Even more Administrator of income Income tax invoked the brand new arrangements off sections 271D and you can 271E to own alleged violation away from areas 269SS and you can 269T and you can implemented punishment away from Rs.21,82,000/- and Rs.sixteen,70,500/- respectively.