P. MUTHUKARUPPAN Vs. JOINT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The appellant-assessee, aggrieved by the impugned common order passed by the Income Tax Appellate Tribunal 'A' Bench, Chennai in I.T.A.Nos.220 to 228/Mds/2014 dated 29.5.2014 for the assessment years 2008-09, 2009-10, 2010-11, 2011-12 & 2012-13 respectively, has brought all these tax case appeals raising the following substantial questions of law:-

(2.) The issue raised in all these appeals is pertaining to the levy of penalty under Sections 271D & 271E of the Income Tax Act for the assessment years 2008-09, 2009-10, 2010-11, 2011-12 & 2012-13 respectively on the appellant-assessee for violation of the provisions of Sections 269SS & 269T of the Income Tax Act, namely, accepting and repaying loan exceeding Rs.20,000/- in cash from/to the money lender, Mr.A.Kannan, Proprietor of M/s Vadamalayan Finance without assigning proper reasons and justification.

(3.) Arguing on the substantial questions of law, Mr.S.Sridhar, learned counsel for the appellant in all the appeals, heavily assailing the impugned order, submitted that the appellant received show cause notices under Sections 271-D and 271-E of the Income Tax Act dated 16.12.2011 from the assessing authority, namely, Joint Commissioner of Income Tax, Pondicherry Range, Pondicherry calling upon him to submit his explanation. On receipt of the same, he filed his reply dated 11.1.2012 seeking adjournment. Accepting the said request for adjournment, he was also issued with another notice dated 1.2.2012, which was served upon him on 6.2.2012. Again he sent another letter dated 16.2.2012 seeking adjournment on the ground that a close associate and senior citizen of his community/mentor in business passed away. On the basis of the said request also, the matter stood adjourned to 23.2.2012. Therefore, fresh notices were again issued to him on 16.2.2012, 6.3.2012 & 17.4.2012 and the assessee sent his letters dated 23.2.2012, 15.3.2012 & 19.4.2012 seeking adjournment. However, when he sent his Chartered Accountant Mr.Jayachander to attend the hearing on 14.5.2012, sadly, for the reasons best known to him, it appears that he has not attended the hearing, as a result, the assessing authority has erroneously passed the impugned order holding him guilty under Sections 269SS and 269T of the Income Tax Act, consequently, penalty under Sections 271D and 271E of the Income Tax Act for each of the assessment years was levied. Aggrieved by the same, he preferred appeals before the Commissioner of Income Tax (Appeals), the appellate authority, inter alia, raising the following grounds:- ''(i) The object of introducing S.269SS is to eradicate the evil practice of making false entries in the account books and later giving explanation for the same. The alleged transactions are all genuine cash transactions and hence not violating the objective of the statute.