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PER S. RIFAUR RAHMAN (AM)

1. These appeals are filed by the revenue against different orders of the Learned Commissioner of Income Tax (Appeals)-49, Mumbai [hereinafter in short "Ld.CIT(A)"] dated 20.02.2019 and 12.02.2019 for the A.Ys. 2013-14 and 2014-15 respectively.

ITA NOs. 3047 & 3113/MUM/2019 M/s. Macrotech Developers Ltd., (Earlier known as M/s. Lodha Developers Ltd.,)

2. "Whether on the facts and circumstances of the case and in law, the Hon'ble CIT(A) is justified in holding that the journal entries should enjoy equal immunity on par with account payee cheques and bank drafts?"

3. "Whether on the facts and circumstances of the case and in law, the Hon'ble CIT(a) is justified in merely relying upon the High Court Order in assessee''s group case company, Lodha Builders(P) Lid. in ITA.No. Nos.171/172/202/2013/2 18/219 of 2015 vide order ITA NOs. 3047 & 3113/MUM/2019 M/s. Macrotech Developers Ltd., (Earlier known as M/s. Lodha Developers Ltd.,) dated 06.02.2018 without examining the cause behind each instance of default which, therefore, rendered the impugned order perverse, and thereby rendered the applicability of any judicial precedents otiose?"

(xvi) To examine how the assessees of the Lodha group will fall in line and obey the judgment of the Hon'ble Bombay High Court dated 12.06.2012 (supra) (xvil) To give clear operational guidelines as to how to save and implement the judgment dated 12.6.2012 of the Bombay High Court in the case of Triumph International Finance India Ltd.(supra).

19. It is respectfully submitted the Hon'ble ITAT may critically examine the above issues and give appropriate guidelines on all the issues. Thereafter, the matter may be set aside to the Assessing Officer to pass fresh orders in the line of the guidelines issued by the ITA NOs. 3047 & 3113/MUM/2019 M/s. Macrotech Developers Ltd., (Earlier known as M/s. Lodha Developers Ltd.,) Hon'ble ITAT. The assessee may be directed to prove reasonable cause in respect of each such transaction, The general explanation like administrative efficiencies, assignment of receivables, squaring of transactions, consolidation of accounts are not legally acceptable explanations. In spite of the perceptions of the assessee, law demands that the transactions should be undertaken through account payee cheques etc, The assessee has no option. The limited issue is that the assessee should have to explain why it did not undertake the transaction through account payee cheque etc. The Assessing Officer may be directed to separately examine the justification given in respect of each default and impose penalty in respect of those transactions where the assessee has not been able to prove reasonable cause. With all the facts available on record, the imposition of penalty would be appropriately scrutinized by the appellate authorities.

Prayer In view of the above, it is respectfully prayed that the Hon'ble Tribunal be pleased to confirm the deletion of the penalty levied under section 271D by the CIT(A) for the assessment years 2013-14 and 2014-15 and dismiss the Department's appeals with costs."

10. Considered the rival submissions and material placed on record, we observed that the issue under consideration is relating to penalty order u/s. 271D of the Act passed by ACIT-7, Mumbai. After considering the submissions of both the counsel, we observed that the Coordinate Bench ITA NOs. 3047 & 3113/MUM/2019 M/s. Macrotech Developers Ltd., (Earlier known as M/s. Lodha Developers Ltd.,) in assessee's group company i.e. Lodha Builder Pvt. Ltd., held on the issue of similar levy of penalty as under: -