K.N.S. Transports vs. The Income Tax Officer, Ward-1, Namakkal

Parties Involved

Facts Summary

The assessee, K.N.S. Transports, a partnership firm carrying on the business of lorry transport, had a penalty of Rs. 19,83,610/- levied by the JCIT, Namakkal Range, Namakkal for violation of provisions of Section 269T of the Income Tax Act, 1961. The firm had repaid a certain loan amount in cash. The assessee filed an appeal before the Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi (CIT(A)), who deleted the penalty. The assessee is aggrieved by the CIT(A)'s observation that the concerned partners are liable to levy penalty u/s. 271E of the Act and not the assessee firm.…

Legal Issues

• 1. Whether the CIT(A) had the jurisdiction to direct the levy of penalty on the partners instead of the assessee firm?

Judgment Outcome

Decided in favour of Assessee.

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