ACIT CC-40, MUMBAI V. KARTIK K. PAREKH, MUMBAI

ITA 697/MUM/2010

• Counselvise Citation: 69719914 RSA 2010
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 28-01-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR B SENTHIL KUMAR
• Section: 271D; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI P.M. JAGTAP AND SHRI R.S. PADVEKAR, JM I.T.A.NO.697/MUM/2010 ASSESSMENT YEAR: 2005-06 THE ASST. COMMISSIONER OF INCOME- TAX, CENTRAL CIRCLE 40, R.NO. 653, 6 TH FLOOR, AAYAKAR BHAVAN, M.K.ROAD, MUMBAI 400 001 VS. SHRI KARTIK K. PAREKH, 9, BHUPEN CHAMBERS, GROUND FLOOR, DALAL STREET, FORT, MUMBAI 400 001. PAN : AADPP 0434 E (APPELLANT) (RESPONDENT) APPELLANT BY : DR. B. SENTHIL KUMAR RESPONDENT BY : NONE O R D E R PER P.M. JAGTAP, AM: THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS)-38, MUMBAI, DAT ED 16.11.2009 FOR THE ASSESSMENT YEAR 2005-06, WHEREBY HE CANCELLED THE P ENALTY OF RS. 2,37,314/- IMPOSED BY THE ASSESSING OFFICER UNDER SECTION 271D BY HOLDING THAT THE TRANSACTIONS REGARDING ACKNOWLEDGMENT OF DEBT EFFEC TED THROUGH JOURNAL ENTRIES IN THE BOOKS OF THE ASSESSEE WOULD NOT AMOUNT TO ACCEP TANCE OF ANY LOAN OR DEPOSIT OTHERWISE THAN BY ACCOUNT PAYEE CHEQUE OR BY ACCO UNT PAYEE BANK DRAFT WITHIN THE MEANING OF SECTION 269SS OF THE ACT. 2. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. IT IS OBSERVED THAT A SIMILAR PENALTY U/S. 271D WAS IMPOSED IN OTHER CASES BELONGING TO THE SAME GROUP AND THE SAME HAVE BEEN DELETED BY THE TRIBUNAL RELYING ON THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF NOIDA TOLL BRIDE CO. LTD. (262 ITR 260) (DEL.) WHEREIN IT WAS HELD THAT PROVISIONS OF SECTION 269SS AND 269T ARE NOT ATTRAC TED IN THE CASE OF JOURNAL ENTRIES. IN ONE OF SUCH CASES, VIZ. KETAN V. PARE KH (ITA NO. 6291/MUM/2007) DECIDED BY THE TRIBUNAL, PENALTY U/S.271D WAS DELE TED HOLDING THAT LOANS ACKNOWLEDGED OR ENTERED INTO THE BOOKS THROUGH JOUR NAL ENTRIES ARE NOT COVERED ITA NO.697/M/2010 KARTIK K. PAREKH 2 BY SECTION 269SS. RESPECTFULLY FOLLOWING THESE JUDI CIAL PRONOUNCEMENTS, WE UPHOLD THE IMPUGNED ORDER OF THE LEARNED CIT(A) CANCELING THE PENALTY IMPOSED BY THE A.O. UNDER SECTION 271D IN RESPECT OF TRANSACTION O F LOANS ACKNOWLEDGED AND ENTERED INTO THE BOOKS OF ACCOUNT THROUGH JOURNAL E NTRIES. 3. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF APRIL, 2011. SD. SD. (R.S. PADVEKAR) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED THE 27 TH APRIL, 2011. KN COPY TO: 1. THE ASSESSEE 2. THE REVENUE 3. THE CIT CENTRAL IV, MUMBAI. 4. THE CIT(A)-38, MUMBAI 5. THE DR D BENCH, MUMBAI BY ORDER /TRUE COPY/ ASST. REGISTRAR, ITAT, MUMBAI