THE ACIT, (CENTRAL)-1, INDORE vs. M/S. PRAKASH ASHPHLTING & TOLL HIGHWAY LTD., INDORE

ITA 805/IND/2019Status: DisposedITAT Indore31 January 2024AY 2014-15Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)42 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the penalties were not sustainable as the seized documents, which formed the basis for the additions and penalties, were found from a third party's premises and not the assessee's. Furthermore, the Tribunal agreed with the CIT(A) that mere book entries are insufficient to establish a default under Sections 269SS or 269T without independent evidence of actual cash movement.

What were the facts?

The Revenue appealed against the deletion of penalties levied under Sections 271D and 271E of the Income Tax Act, 1961, by the CIT(A). The penalties were imposed for alleged violations of Sections 269SS and 269T, respectively, related to cash transactions.

What were the issues?

Whether penalties under Sections 271D and 271E are leviable when the evidence is based on documents seized from a third party and if mere book entries constitute a violation of Sections 269SS and 269T.

Which sections of the Income-tax Act were involved?

Section 271D,Section 271E,Section 269SS,Section 269T

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Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI VIJAY PAL RAO & SHRI B.M. BIYANI

For Appellant: Shri Anup Garg & Shri Vikas Guru, CAs & Ld. ARs
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 23.01.2024Pronounced: 31.01.2024

Per Bench:

Feeling aggrieved by a consolidated appeal-order dated 31.05.2019 passed

by learned Commissioner of Income-tax (Appeals)-3, Bhopal [“CIT(A)”],

which in turn arise out of respective penalty-orders dated 28.03.2018

passed by Joint Commissioner of Income-tax (Central), Indore u/s 271D &

271E of Income-tax Act, 1961 [“the Act”], the revenue has filed the captioned thirteen (13) appeals for different Assessment-Years [“AY”] 2009-

10 to 2015-16. These are two sets of appeals, ITA No. 793 to 799/Ind/2019 are qua the penalties u/s 271D and I

The order continues below.

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