LODHA BUILDERS PVT. LTD. Vs. ACIT

JUDGEMENT

(1.) THERE are 7 appeals under consideration involving seven different assessees. These are the sister concerns belonging to Lodha Group. All these appeals are filed by the assessees involving AY 2009 -2010 against the common order of the CIT (A) -38, Mumbai, dated 31.12.2013 involving penalty u/s. 271D of the Act. Levy of penalty u/s. 271D/E of the Income Tax Act is the issue in these appeals and the CIT (A) passed separate orders, dated same involving penalty u/s. 271E. Since, the issues raised by the assessees in all the seven appeals are identical. Therefore, for the sake of convenience, they are clubbed, heard combinedly and disposed of in this consolidated order. Appeal wise and ground wise adjudication is given in the following paragraphs. To start with, we shall undertake to adjudicate the appeal in the case of Lodha Builders Pvt. Ltd. in the succeeding paragraphs involving two penalties u/s. 271D & 271E of the Act.

(2.) THIS appeal ITA No. 476/M/2014 filed by the assessee on 21.1.2014 is in connection with penalty levied u/s. 271D of the Act and the effective grounds raised in the appeal read as under:

(3.) ON the facts and in the circumstances of the case and in law, the Ld CIT (A) erred in upholding the penalty levied under section 271D of the Act without appreciating the fact that the transactions entered into amongst the group companies were genuine, bona fide and entered into on account of commercial exigency and were neither intended nor resulted in any tax evasion or concealment of income. The curbing of which was the avowed object behind the introduction of section 269SS of the Act.