Hindustan Agencies Pvt. Ltd., New Delhi V. Addl. CIT, New Delhi

ITA 3387/DEL/2014

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 2927 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 19-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 03-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AASISH MOHANTY
• Assessee Lawyers: ASHU TANDO N

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC-I : NEW DELHI BEFORE SHRI R.S. SYAL, AM & SMT. BEENA A. PILLAI, JM ITA NO.3387/DEL/2014 ASSESSMENT YEAR : 2008-09 HINDUSTAN AGENCIES PVT. LTD., LANE NO.D-34, 100 FT ROAD, CHHATTERPUR PAHARI, CHHATTERPUR, NEW DELHI. PAN: AAACH0059F VS. ADDL. CIT, RANGE-12, NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI ASHU TANDON, CA DEPARTMENT BY : SHRI AASISH MOHANTY, SR. DR DATE OF HEARING : 19.01.2016 DATE OF PRONOUNCEMENT : 20.01.2016 ORDER PER R.S. SYAL, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER PASSED BY THE CIT(A) ON 31.3.2014 IN RELATION TO T HE ASSESSMENT YEAR 2008-09, CONFIRMING PENALTY OF RS.3,58,100/- IMPOS ED BY THE AO U/S ITA NO.3387/DEL/2014 2 271D/271E OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT). 2. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE RECEIVED CERTAIN SMALL AMOUNTS IN CASH TOTALING TO RS.3,13,4 00/- FROM ITS SISTER CONCERN, NAMELY, M/S HINDUSTAN PLYWOOD COMPANY AND ALSO PAID TO IT IN CASH CERTAIN SMALL AMOUNTS TOTALING RS.44,700/-. ON BEING CALLED UPON TO EXPLAIN AS TO WHY PENALTY BE NOT IMPOSED FO R VIOLATION OF THE PROVISIONS OF SECTION 269SS/269T OF THE ACT, THE AS SESSEE, INTER ALIA, CONTENDED THAT THESE TRANSACTIONS WERE NOT ON ACCOU NT OF ANY LOAN OR DEPOSIT, BUT, ON CURRENT ACCOUNT. NOT CONVINCED WI TH THE ASSESSEES SUBMISSIONS, THE AO IMPOSED PENALTY FOR A SUM OF RS .3,58,100/- U/S 271D AND SECTION 271A OF THE ACT REPRESENTING THE A MOUNTS RECEIVED AND REPAID IN CASH. THE LD. CIT(A) AFFIRMED THE PE NALTY ORDER. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED FROM THE IMPUGNED ORDER THAT THE ASSESSEE CATEGORICALLY STATED THAT IT HAD BEEN PURCHASING AND SELLING THE GOODS AND MATERIALS FROM/TO M/S HINDUST AN PLYWOOD ITA NO.3387/DEL/2014 3 COMPANY AND THE AMOUNTS IN QUESTION WERE ON ACCOUNT OF TRADING TRANSACTIONS. WE HAVE PERUSED ACCOUNT OF M/S HINDU STAN PLYWOOD COMPANY, A COPY OF WHICH HAS BEEN PLACED ON RECORD. ITS PERUSAL INDICATES THAT IT IS A RUNNING ACCOUNT IN WHICH THE RE ARE PURCHASE AND SALE TRANSACTIONS ON DIFFERENT DATES INCLUDING 2.4.2007, 24.4.2007, 13.7.2007, 16.7.2007 AND 27.11.2007 ETC. APART FROM THAT, THE RE ARE OTHER RECEIPTS AND PAYMENTS IN CASH AND BY CHEQUES AS WELL. IF WE LOOK AT THE TOTALITY OF THE ACCOUNT, IT BECOMES CLEAR THAT THE SAME IS I N THE NATURE OF CURRENT ACCOUNT AND DOES NOT PRIMARILY REPRESENT ANY ACCEPT ANCE OR REPAYMENT OF LOANS AND DEPOSITS OTHERWISE THAN BY WAY OF CASH AS CONTEMPLATED U/S 269SS/269T OF THE ACT. IT GOES WITHOUT SAYING THAT NO PENALTY CAN BE IMPOSED U/S 271D/271E OF THE ACT IN RESPECT OF RECE IPTS AND REPAYMENTS IN CASH OF TRANSACTIONS OTHER THAN LOANS/DEPOSITS. UNDER SUCH CIRCUMSTANCES, WE SET ASIDE THE IMPUGNED ORDER AND DIRECT THE DELETION OF THE PENALTY. ITA NO.3387/DEL/2014 4 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 20.01.201 6. SD/- SD/- [BEENA A. PILLAI] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 20 TH JANUARY, 2016. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.