view that there is contravention of provisions of section 269SS/269T
of the Act since assessee received and repaid loan/deposit over and
above ... that the journal entries are not covered within the
violation of Section 269T is rejected. However, the transactions
covered by the journal entries are made
noticed that the assessee has violated the provisions of section
269SS and 269T of the Act. Therefore, after completing the assessment ... account payee
cheque/draft, thereby resulting into violation of section 269SS and 269T
of the I.T.Act. Thereafter, Addl.CIT issued a notice
payee
cheque or account payee bank draft within the meaning of Section 269T
to attract levy of penalty under Section 271E of the Income ... taken against the assessee for violating the provisions of Section 269T
of the Act. The assessee opposed the show-cause notice by filing a
detailed
contravention of the modes of
repayment set out in Section 269T ? The argument advanced by the counsel for
the assessee that the bonafide transaction ... ordinary course of business
would not come within the mischief of Section 269T cannot be accepted,
because, the section does not make any distinction between
having held that the assessee had
contravened the provisions of section 269T of the Income
Tax Act, 1961, ought to have upheld the levy ... that the assessee had
violated the provisions of Sec. 269SS and Sec. 269T of the I.T Act,
referred the matter to the Additional
assessment year
2011-12 for violating the provisions of sec. 269SS and 269T of the Act.
2. The facts that led to levy of penalty ... view that the assessee has violated the provisions of sec.269SS and
269T of the Act by accepting and repaying loans otherwise than by account
Supreme Court
while deciding the constitutional validity of Sec. 269SS/269T held
that the objects of these sections are to defeat the introduction of
unaccounted ... business associates
through journal entries shall attract the provisions of Sec.
269SS/269T. Even the old decision of Delhi High Court in the case
shall not
be levied for contravention of provisions of section 269SS and 269T of
the Income-tax Act, 1961. In response to show cause notice ... parties would not hit the
rigours of provisions of section 269SS and 269T . The assessee further
submitted that it was being karta
stated
that the assessee has violated the provisions of section 269SS and 269T
of the Act. Accordingly, the matter was referred to the Joint
Commissioner ... vide journal entries does not attract the provisions of section
269SS and 269T of the Act. However, the ld AO (i.e learned Joint
Commissioner
journal
entries) amounts to violation of the provisions of section 269SS and 269T of the Act.
Subsequently, for imposing the penalty proceedings, AO made ... cheque / draft, the assessee has violated the provisions of section 269SS
and 269T of the IT Act. Regarding initiation of penalty proceedings u/s 271D
