Case Number: ITA 783/DEL/2020
Appellant: Shagun Jewellers Pvt. Ltd., Delhi
Respondent: JCIT, Range-23, New Delhi
Assessment Year: 2010-11
Result: Penalty overturned
Case Filed on: 2020-02-13
Order Type: Final Tribunal Order
Date of Order: 2021-07-26
Pronounced on: 2021-07-26
Shagun Jewellers Pvt. Ltd. challenged a penalty of Rs. 1,58,00,000 imposed under Section 271D of the Income Tax Act, which was originally confirmed by the CIT(A). The case was based on alleged violations of Section 269SS regarding cash transactions purportedly not recorded or misrepresented in the company’s books.
The company argued that the transactions in question did not violate Section 269SS, as they were neither unrecorded cash transactions nor were they misrepresented. They contended that the penalty was unjust and based on erroneous assumptions, including an alleged association with controversial figures purportedly involved in the transactions.
The tribunal found substantial merit in the appellant’s arguments, notably recognizing inconsistencies in the evidence used to levy the penalty. After reviewing the related appeals and the outcomes of corresponding judicial proceedings, the tribunal decided to overturn the penalty, citing a lack of direct evidence of the alleged cash transactions and procedural failures in the imposition of the penalty.
Order Pronounced in the Open Court on 26/07/2021
Members:
Assistant Registrar: A K Keot
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