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C.I.T. Central-Iv, Mumbai vs M/S Triumph International Finance (I) ... on 21 April, 2014

(e) Mr. Mohanty's submission that the test laid down in Triumph International Finance (supra) will have no application in the present facts in view of the large number of entries in this case as compared to only one entry in the case before this Court. The test of reasonable cause can not, in the present facts be determined on the basis of the number of entries. If there was a reasonable cause for making the journal entries, then, the number of entries made, will not make any difference.
Supreme Court - Daily Orders Cites 1 - Cited by 12 - Full Document

Commissioner Of Income-Tax,Andhra ... vs Mis. Bhikaji Dadabhai & Co on 22 February, 1961

This observation is found to be without merit particularly in light of the decision of High Court of Bombay in the case of CIT vs MIs. Triumph International Finance(l) Ltd ITA No.5745 of 2010 dated 17.8.2012 for the A.Y.2000-01,as noted in para 6.3 above, wherein the appellant company and its sister concern M/s, Triumph Securities Ltd had transactions of sale and purchase with common 19 ITA No . 6 4 22 / Mu m /2 0 16 CO . 1 1 1/ Mu m/ 20 1 8 customers and the credit/debit liabilities were settled through journal entries and it was held 'that the transactions in question were undertaken not with a view to receive loans/deposits in contravention of Section 26955, but in a view to extinguish the mutual liability of paying/ receiving the amounts by the assessee and its sister concern to the customers In the absence of any material on record to suggest that the - transactions in question were not reasonable or bonafide and in view of section 273B of the Act, we see no reason to interfere with the order of the Tribunal in deleting the penalty of Rs.22.99 crores.' 6.5.2. It has also been observed by the AddI.CIT that it shalt not be out of place to mention that the assessee group has made a disclosure before the Hon'ble Income Tax Settlement Commission, Mumbai, of undisclosed income arising out of transactions with and by various group entities which are also the subject matter of investigation pursuant to the direction of Hon'ble ITSC Hence it cannot be ruled out that the entities through whom such repayment/acceptances are done are not part of a chain of entities involved in transaction for the purpose of tax evasion. In this regard the appellant has submitted that no investigation pursuant to the order of the Settlement Commission was pending on 28.92015 i.e. the date of levy of penalty since the order of the Settlement Commission u/s.245D(4) was passed on 25.11.2014. Thus, the above said observation is found to be based on presumptions 20 ITA No . 6 4 22 / Mu m /2 0 16 CO . 1 1 1/ Mu m/ 20 1 8 and do not justify the levy of penalty u/s.271D of the Act.
Supreme Court of India Cites 9 - Cited by 126 - J C Shah - Full Document
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