Bhavesh K. Kothari, RAJKOT-GUJARAT V. The Addl. Commmr. Income Tax, RAJKOT-GUJARAT

ITA 558/RJT/2015

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5944 (ITAT-RAJKOT)
• Duration Of Justice: 3 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 06-11-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: P BHALLA
• Section: 271E; 147; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: SHRI RAJPAL YADAV, JUDICIAL MEMBER AND S H RI AMARJIT SINGH , ACCOUNTANT MEMBER [CONDUCTED THROUGH E - COURT AT AHMEDABAD] BHAVESH K. KOTHARI, B/2, SHRI SADGURU APPT., JAGNATH PLOT, RAJKOT PAN: ACTPK7449Q (APPELLANT) VS THE ADDL. CIT, RANGE - 4, RAJKOT (RESPONDENT) REVENUE BY : S H RI P. BHALLA, SR. D . R. ASSESSEE BY: NONE DATE OF HEARING : 17 - 07 - 2 019 DATE OF PRONOUNCEMENT : 29 - 07 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THI S ASSESSEE S APPEAL FOR A.Y. 2005 - 06 , AR ISES FROM ORDER OF THE CIT(A) - 2, RAJKOT DATED 21 - 08 - 2015 , I N PROCEEDINGS UNDER SECTION 271E OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE SOLITARY GRO UND OF APPEAL OF THE ASSESSEE IS AGAINST THE DECISION OF LD. CIT(A) IN CONFIRMING TH E PENALTY U/S. 271E OF RS. 4,00 0/ - I T A NO . 558 / RJT /20 15 A SSESSMENT YEAR 200 5 - 06 I.T.A NO. 558 /RJT /20 15 A.Y. 2005 - 06 PAGE NO BHAVESH K. KOTHARI VS. ADDL. CIT 2 3. THE FACT IN BRIEF IS THAT ASSESSEE HAS FILED RETURN OF INCOME ON 2 0 TH JAN, 2005 DECLARING INCOME OF RS. 2 , 61 ,530/ - . T HE CASE OF TH E ASSESSEE WAS REOPENED U/S. 147 OF THE ACT BY ISSUING OF NOTICE U/S. 148 OF THE ACT . DURING THE RE - ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER HAS NOTICED THAT THE ASSESSEE HAS MADE ITS REPAYMENT OF LOANS IN MODE OTHER THAN CROSSED DEMAND DRAFT OR CHE QUE AS PRESCRIBED IN SECTION 269T OF THE ACT. THEREFORE, THE ASSESSING OFFICER HAS INITIATED PENALTY PROCEEDINGS U/S. 271E IN VIEW OF THE PROVISION OF SECTION 269T OF THE ACT. 4. DURING THE COURSE OF PENALTY PROCEEDINGS , THE ASSESSEE HAS FAILED TO EXPL AIN THE REASON FOR MAKING REPAYMENT OF LOAN IN C ASH OF RS. 4000/ - WHEN THE LOAN FROM CO - OPERATIVE SOCIETY WAS EXCEEDING RS. 20,000/ - . OUT OF TOTAL LOAN OF RS. 70,977/ - , THE ASSESSEE HAS MADE REPAYMENT OF RS. 4000/ - IN CASH. CONSEQUENTLY, THE ASSESSING O FFICER HAS LEVIED PENALTY OF RS. 4000/ - ON ACCOUNT OF MAKING REPAYMENT OTHERWISE THAN BY AN ACCOUNT PAYEE CHEQUE OR ACCOUNT PAYEE BANK DRAFT. 5. THE ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A). T HE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE. 6 . DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, NOBODY HAS ATTENDED FROM THE SIDE OF THE ASSESSING OFFICER. THE LD. DEPARTMENTAL REPRESENTATIVE HAS PLACED RELIANCE ON THE ORDER OF LD. CIT(A). AFTER HEARING LD. DEPARTMENTAL REPRESENTATIVE AND P ERUSAL OF THE MATERIAL ON RECORD, IT IS NOTICED THAT IT IS UNDISPUTED FACT THAT ASSESSEE HAS MADE REPAYMENT OF LOAN TO THE AMOUNT OF RS. 4000 / - IN CASH ON 27 TH APRIL, 2008 OUT OF TOTAL LOAN OF RS. I.T.A NO. 558 /RJT /20 15 A.Y. 2005 - 06 PAGE NO BHAVESH K. KOTHARI VS. ADDL. CIT 3 70,977/ - TO BE REPAID TO THE SOCIETY. IN THE LIGHT OF THE ABOVE FACT , IT IS CLEAR THAT ASSESSEE HAS REPAID LOAN TOTALING TO RS. 4000/ - IN CASH WHEN THE LOAN FROM CO - OPERATIVE SOCIETY WAS EXCEEDING RS. 2000 0 / - . IT IS CLEARL Y LAID DOWN IN SECTION 269T OF THE ACT THAT NO PERSON SHALL REPAY ANY LOAN OR DEPOSIT OTHE RWISE THAN BY ACCOUNT PAYEE CHEQES OR ACCOUNT PAYEE DD, IF THE ACCOUNT OR LOAN OR DEPOSIT OR THE AGGREGATE AMOUNT OF SUCH LOAN OR DEPOSIT WAS R S. 20,0 0 0/ - OR MORE. DURING THE COURSE OF PENALTY PROCEEDINGS, THE A SSESSEE HAS FAILED TO EXPLAIN THE CIRCUMSTA NCES AND REASON FOR MAKING THE REPAYMENT OF LOAN IN CASH AS LAID DOWN IN RULE 6DD OF THE INCOME TAX RULES , THEREFORE, CONSIDERING THE DECISION LD. CIT(A) AN D FACT OF THE CASE, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE ASSESSEE . ACCORDINGLY, THE APPEAL OF THE ASSESSEE IS DISMISSED. 7 . IN THE RESULT , THE APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 29 - 07 - 201 9 SD/ - SD/ - (RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACC OUNTANT MEMBER AHMEDABAD : DATED 29 /07 /201 9 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT