levy of penalty u/s 271E or contravention of provision of section 269T of the Act.
2. Brief facts of the case are that ... under section 271E holding
that assessee has violated the provision of section 269T . The AO observed that the
assessee has transferred deposit received from
account of contravention of the provisions of section 269T of the
Act.
4. The facts relevant to appreciate the controversy lie in a narrow
compass ... Samtani, which has been repaid otherwise than
the modes specified in section 269T of the Act. It transpires that the
said director had given unsecured
Appeals)-4, Mumbai and arises out of the
penalty order u/s 269T r.w.s 271E of the Income ... applicable thereto,
the Ld. CIT(A) erred in confirming penalty u/s 269T r.w.s. 271 E of the
Income
that the said
transaction fell foul of the provisions of Section 269SS / 269T of the Act,
which proscribed any person from accepting any loan ... alleged violation
of the provisions of Section 269SS / 269T of the Act.
3.2 The assessment order dated 30.12.2009 was carried in appeal by the
assessee
271E
could be imposed for contravention of provisions of Section 269T .
The relevant portion of the order is extracted below:
"Held, (i) that ... deposit through journal
entries did not violate the provisions of section 269T of
the Act.
ii) That it would have been an empty formality
Assessing Officer held the assessee guilty
of violation of section 269T of the Act. As per the Revenue,
the assessee had shown the repaid amount ... from customers cannot be treated as deposits for
the purposes of section 269T of the Act. The penalty was
deleted. The Revenue is aggrieved
outside the normal business
operations.Therefore, the provisions of sections 269SS and 269T of the Act were not attracted
where there was no involvement
initiation of penalty for violation of Section 269SS / 269T.
Since, the penalty proceedings are separate, the same may be agitated
by the assessee at appropriate
