Itta/66/2015 Of The Pr. Commissioner Of Income Tax (Central) v. G.sanjay Chowdhary

THE HON’BLE SRI JUSTICE G. CHANDRAIAHAND THE HON’BLE SRI JUSTICE CHALLA KODANDA RAM I.T.T.A. No. 66 of 2015 ORDER:- (per Hon’ble Sri Justice G. Chandraiah) This appeal, at the instance of Revenue, is filed against theorder of the Tribunal dated 30.10.2014, purporting to raise the followingsubstantial question of law: “1) Whether on the facts and in thecircumstances of the case and in law, theHon’ble Income Tax Appellate Tribunal isjustified in confirming the order of CIT (A) andthereby holding that the transactions throughjournal entry do not attract the provisions ofSec.269T and consequently penalty is notleviable u/s 271E of the I.T. Act, 1961?” 2. When the matter is taken up for hearing, learned StandingCounsel for the Department submits that earlier, in respect of the familymember of the assessee, this Court dismissed I.T.T.A.No. 12 of 2014,wherein it was held as: “We have read the reasoning rendered in theprevious judgment. It appears that the assesseechallenged the penalty proceedings initiatedunder Section 271D of the Income Tax Act, 1961on the ground of illegal borrowings incontravention of Section 269SS of the Act. Thelearned Tribunal on an earlier occasion foundthat there is no proof of receipt of such loan fromthe records and they were only found to bejournal entries. The learned Tribunal, in ourview, correctly observed that relying on an entryin the journal, no penalty proceedings can beinitiated. Hence, it was sent for clarificationwhether actual flow of money did take place. Therefore, the matter was remanded and nodecision was taken on merit.” 3. The reasoning in the said judgment is applicable to the factsand circumstances of the present case. 4. In that view of the matter, the appeal is dismissed. No costs. Miscellaneous petitions, if any pending in this appeal, shall standclosed. ______________________ G. CHANDRAIAH, J 02[nd] July, 2015ksm _____________________________ CHALLA KODANDA RAM, J THE HON’BLE SRI JUSTICE G. CHANDRAIAH AND THE HON’BLE SRI JUSTICE CHALLA KODANDA RAM ksm I.T.T.A. No. 66 of 2015 02[nd] July, 2015