JANARDHANAM BALAJI Vs. ADDITIONAL COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Both these appeals are against a judgment and order dated 7th April 2017 passed by the Income Tax Appellate Tribunal, rejecting the appeals being I.T.A.Nos.3011 and 3077/Mds/2016 filed by the appellant assessee against orders dated 29th September 2016 and 18th October 2016 of the learned Commissioner of Income Tax (Appeals)-7, Chennai confirming levy of penalty under Sections 271E and 271D of the Income Tax Act, 1961 (hereinafter referred to as 'IT Act') on the appellant assessee, in respect of the assessment year 2012-2013.

(2.) The appellant Assessee was running a petrol pump and had filed return of income disclosing income of Rs.5,53,851.00. In course of assessment proceedings, the learned Assessing Officer noted that the Assessee had been maintaining a book, namely, Sundry Debtors ledger, which reflected cash payments and cash receipts from various parties. When the assessment was completed, certain disallowances were made in respect of interest payment under Section 40(a)(ia) of the IT Act, business promotion expenses of Rs.80,153.00 and claim under Chapter VIA for Rs.1,04,864.00.

(3.) After assessment, the Assessment Officer directed that penalty proceedings under Section 271(1)(c) of the IT Act be initiated separately. Notice under Section 274 of the IT Act was issued to the Assessee on 31st August, 2015. Penalty was levied, as it was found that there had been violation of Sections 269SS and 269T of the IT Act by reason of receipt of cash loan and repayment of loan in cash during the same assessment year. Penalty of Rs.14,40,000.00 was imposed in respect of loan received in cash under Section 271D of the IT Act and further penalty of Rs.14,40,000.00 was imposed under Section 271E of the IT Act in respect of the loan amount repaid in cash.