M. Sougoumarin, CHENNAI v. Joint CIT, Pondicherry

ITA 1907/CHNY/2013 | 2011-2012
Pronouncement Date: 31-10-2013 | Result: Allowed

Appeal Details

RSA Number 190721714 RSA 2013
Assessee PAN AAJPM4750C
Bench Chennai
Appeal Number ITA 1907/CHNY/2013
Duration Of Justice 2 day(s)
Appellant M. Sougoumarin, CHENNAI
Respondent Joint CIT, Pondicherry
Appeal Type Income Tax Appeal
Pronouncement Date 31-10-2013
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 31-10-2013
Date Of Final Hearing 31-10-2013
Next Hearing Date 31-10-2013
Assessment Year 2011-2012
Appeal Filed On 29-10-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH CHENNAI BEFORE DR. O.K.NARAYANAN VICE-PRESIDENTAND SHRI VIKAS AWASTHY JUDICIAL MEMBER ITA NOS. 1820 1821 1822 1823 1824 & 1825(MDS)/2 013 ASSESSMENT YEARS : 2006-07 TO 2010-11 LATE SHRI K. MUTHUKARUPPAN R/BY SHRI M. PALANI ADECALAM 115 MUTHIAH MUDALI STREET MUTHIALPET PONDICHERRY 605 003. PAN : AAJPM 4750 C V. THE JOINT COMMISSIONER OF INCOME TAX PONDICHERRY RANGE PONDICHERRY. (APPELLANT) (RESPONDENT) ITA NOS. 1826 & 1827(MDS)/2013 ASSESSMENT YEARS : 2011-12 & 2012-13 SHRI M. PALANI ADECALAM 115 MUTHIAH MUDALI STREET MUTHIALPET PONDICHERRY 605 003. PAN : AABPA 2573 M V. THE JOINT COMMISSIONER OF INCOME TAX PONDICHERRY RANGE PONDICHERRY. (APPELLANT) (RESPONDENT) ITA NOS. 1905 1906 1907 & 1908(MDS)/2013 ASSESSMENT YEARS : 2009-10 TO 2012-13 SHRI M. SOUGOUMARIN 115 MUTHIAH MUDALI STREET MUTHIALPET PONDICHERRY 605 003. PAN : AAIPS 8447 D V. THE JOINT COMMISSIONER OF INCOME TAX PONDICHERRY RANGE PONDICHERRY. (APPELLANT) (RESPONDENT) APPELLANTS BY : SHRI S. SRIDH AR ADVOCATE RESPONDENT BY : SHRI T.N. BETGI RI IRS JCIT DATE OF HEARING : 31 ST OCTOBER 2013 DATE OF PRONOUNCEMENT : 31 ST OCTOBER 2013 2 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 O R D E R PER BENCH: THIS IS A BUNCH OF TWELVE APPEALS. THESE APPEALS ARE FILED BY A FATHER AND TWO SONS. 2. FATHER SHRI K. MUTHUKARUPPAN HAS SINCE BEEN DECE ASED THE APPEALS RELATING TO LATE SHRI K. MUTHUKARUPPAN ARE FILED BY HIS SON SHRI M. PALANI ADECALAM IN HIS STATUS AS LEGAL REP RESENTATIVE. THERE ARE SUCH SIX APPEALS. THEY RELATE TO ASSESSM ENT YEARS 2006- 07 2007-08 2008-09 2009-10 2010-11 AND 2011-12. 3. NEXT TWO APPEALS IN I.T.A. NOS. 1826(MDS)/2013 A ND 1827(MDS)/2013 ARE FILED BY SHRI M. PALANI ADECALAM ON HIS OWN BEHALF. THE RELEVANT ASSESSMENT YEARS ARE 2011-12 AND 2012-13. 4. THE REMAINING FOUR APPEALS ARE FILED BY THE OTHE R SON SHRI M. SOUGOUMARIN FOR ASSESSMENT YEARS 2009-10 2010-11 2011-12 & 2012-13. 5. ALL THESE APPEALS ARE DIRECTED AGAINST THE ORDER S PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-VI AT CHEN NAI. THE 3 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 APPEALS ARISE OUT OF THE ORDERS OF PENALTY PASSED UNDER SECTION 271E OF THE INCOME-TAX ACT 1961. 6. LATE SHRI K. MUTHUKARUPPAN AND HIS TWO SONS CAR RYING ON BUSINESS AT PONDICHERRY HAD AVAILED LOANS FROM A F INANCING FIRM BY NAME M/S VADAMALAYAN FINANCE. THIS FINANCING FIRM IS OWNED BY ONE SHRI A. KANNAN. THERE WAS A SURVEY UNDER SECTI ON 133A ON THE BUSINESS OF M/S VADAMALAYAN FINANCE ON 8.10.201 1. IN THE COURSE OF SURVEY IT WAS BROUGHT OUT THAT SHRI A. K ANNAN IS CARRYING ON THE BUSINESS OF FINANCING UNDER THE NAME AND STY LE OF M/S VADAMALAYAN FINANCE EVEN THOUGH SHRI A. KANNAN DOE S NOT HAVE A LICENCE TO CARRY ON THE MONEY LENDING BUSINESS. SHRI KANNAN LENDS MONEY ON THE STRENGTH OF PRONOTES. SUCH PRON OTES ARE RETURNED TO THE BUYERS WHEN THE LOANS ARE REPAID. HE IS COLLECTING INTEREST ON THE LOANS DISBURSED BY HIM AND THE ACCO UNTS RELATING TO THE MONEY LENDING BUSINESS ARE MAINTAINED IN A REGI STER CALLED BY NAME KISHTI VASOOL LIST BOOK. 7. IT IS IN THE LIGHT OF THE DETAILS COLLECTED IN T HE COURSE OF THE ABOVE SURVEY CONDUCTED ON THE BUSINESS OF M/S VADAM ALAYAN FINANCE IT WAS NOTICED THAT THE ASSESSEES HEREIN H AVE AVAILED LOANS FROM THE SAID MONEY LENDING FIRM AND HAVE ALS O REPAID SUCH LOANS TO THE FIRM. IT WAS NOTICED THAT THE ACCEPTA NCE AND REPAYMENT 4 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 OF LOANS BY ALL THESE THREE ASSESSEES WERE MADE IN CASH. ACCORDING TO THE ASSESSING OFFICER ACCEPTING OF LO ANS AND REPAYMENT OF LOANS IN CASH HAVE RESULTED IN VIOLATI ON OF THE PROVISIONS OF LAW STATED IN SECTIONS 269SS AND 269T OF THE INCOME- TAX ACT 1961. VIOLATION OF THE ABOVE PROVISIONS M AKE THE ASSESSEES LIABLE FOR PENALTIES UNDER SECTIONS 271D AND 271E. 8. SECTION 269SS PROVIDES THE MODE OF TAKING OR ACC EPTING CERTAIN LOANS OR DEPOSITS. IT PROVIDES THAT NO PER SON SHALL TAKE LOAN OR ACCEPT DEPOSIT EXCEEDING ` 20 000/- IN AGGREGATE IN CASH. IF THE ABOVE SECTION 269SS IS VIOLATED A PENALTY IS PROVI DED UNDER SECTION 271D. THE PENALTY SHALL BE A SUM EQUAL TO THE AMOUNT OF LOAN OR DEPOSIT TAKEN OR ACCEPTED BY THE PERSON. L IKEWISE SECTION 269T PROVIDES THE MODE OF REPAYMENT OF CERTAIN LOAN S OR DEPOSITS. ACCORDING TO THE ABOVE SECTION NO LOAN OR DEPOSIT SHALL BE REPAID OTHERWISE THAN BY ACCOUNT PAYEE CHEQUE OR ACCOUNT P AYEE BANK DRAFT DRAWN IN THE NAME OF THE PERSON WHO GAVE THE LOAN OR MADE THE DEPOSIT. THERE ALSO THE AGGREGATE LIMIT OF TH E AMOUNT IS ` 20 000/-. VIOLATION OF THE ABOVE SECTION PROVIDES FOR LEVY OF PENALTY UNDER SECTION 271E WHICH IS EQUAL TO THE AMOUNT OF THE LOAN OR DEPOSIT REPAID BY THE PERSON. 5 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 9. SECTION 273B PROVIDES THAT NO PENALTY SHALL BE I MPOSED AMONG OTHERS UNDER SECTIONS 271D AND 271E IF THE PERSON PROVES THAT THERE WAS REASONABLE CAUSE FOR THE FAILURE OF COMPLYING WITH THE LAW STATED IN SECTION 269SS AND 269T. 10. WHEN THE ASSESSING OFFICER PROPOSED LEVYING OF PENALTY THE ASSESSEES SUBMITTED A DETAILED REPLY TO THE ASSESSI NG OFFICER IN THE LIGHT OF THE LAW STATED IN ABOVE PARAGRAPH AND REQU ESTED THAT PENALTIES MAY NOT BE LEVIED AS THE LOANS WERE TAKEN AND REPAID ON THE EXIGENCIES OF BUSINESS AND THEY HAD NO OTHER WA Y BUT TO COMPLETE THOSE TRANSACTIONS IN CASH. THE ASSESSING OFFICER REJECTED THE DETAILED SUBMISSIONS MADE BY THE ASSES SEES AND LEVIED PENALTIES UNDER SECTIONS 271D AND 271E RESPE CTIVELY FOR THE OFFENCE OF TAKING LOANS AND REPAYING THE SAME OTHER WISE THAN BY WAY OF CROSSED BANK CHEQUE OR CROSSED BANK DRAFT. 11. THE PENALTIES WERE TAKEN IN FIRST APPEAL BEFORE COMMISSIONER OF INCOME TAX (APPEALS)-VI AT CHENNAI. THE COMMISSIONER OF INCOME TAX (APPEALS) CONSIDERED THE ISSUE OF PENALTIES LEVIED UNDER SECTIONS 271D AND 271E IN A DETAILED MANNER. HE EXAMINED EACH AND EVERY TRANSACTION OF TAKING OF LOAN AND REPAYMENT OF THE LOAN. HE EXAMINED EXPLANATION S OFFERED BY THE ASSESSEES ON THE CIRCUMSTANCES IN WHICH THEY W ERE 6 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 CONSTRAINED TO MAKE THE TRANSACTIONS IN CASH. ON T HE BASIS OF THE ABOVE HE FOUND THAT THERE EXISTED REASONABLE CAUSE FOR ACCEPTING LOANS IN CASH BY THESE ASSESSEES. THE COMMISSIONER OF INCOME TAX (APPEALS) HELD THAT THE CASH LOANS WERE AVAILED BY THE ASSESSEES FOR MEETING URGENT BUSINESS NECESSITIES. HE HELD THAT ASSESSEES HAVE ESTABLISHED REASONABLE CAUSE FOR ACC EPTING LOANS IN CASH. THEREFORE THE COMMISSIONER OF INCOME TAX (APPEALS) HELD THAT THE VIOLATION OF LAW STATED IN SECTION 26 9SS WAS ONLY TECHNICAL IN NATURE. HE ACCORDINGLY DELETED THE PE NALTIES LEVIED UNDER SECTION 271D IN THE CASE OF ALL THESE THREE ASSESSEES. 12. BUT THE COMMISSIONER OF INCOME TAX (APPEALS) D ID NOT AGREE WITH THE CONTENTIONS OF THE ASSESSEES THAT TH ERE WAS AGAIN REASONABLE CAUSE FOR REPAYING THE LOANS IN CASH. T HE COMMISSIONER OF INCOME TAX (APPEALS) HELD THAT THE REPAYMENT OF LOANS MADE BY THE ASSESSEES IN CASH SUBSTANTIVELY V IOLATED THE PROVISIONS OF LAW STATED IN SECTION 269T. HE HELD THEREFORE THAT THE PENALTIES UNDER SECTION 271E HAVE BEEN LEVIED IN AC CORDANCE WITH LAW. THE COMMISSIONER OF INCOME TAX (APPEALS) ACC ORDINGLY CONFIRMED THE PENALTIES LEVIED UNDER SECTION 271E O F THE INCOME- TAX ACT 1961. 7 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 13. THE ASSESSEES ARE AGGRIEVED BY THE ORDERS OF TH E COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMING THE PENALTIES LEVIED UNDER SECTION 271E. THEREFORE THESE APPEAL S FILED BEFORE THE TRIBUNAL. 14. THE COMMON GROUNDS RAISED IN THESE APPEALS ARE AS FOLLOWS:- (1) THE COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED IN SUSTAINING THE LEVY OF PENALTY UNDER SECTION 271E R/W SECTION 269T OF THE INCOME-TAX ACT 1961 WITHOUT ASSIGNING PROPER REASONS. (2) THE COMMISSIONER OF INCOME TAX (APPEALS) HAS FAILED TO APPRECIATE THAT THE LEVY OF PENALTY UNDER SECTION 271E IS UNJUSTIFIED AND THEREFORE NOT SUSTAINABLE IN LAW. (3) THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT HAVE CONSIDERED THE PROVISIONS OF SECTION 271E IN THE LIGHT OF SECTION 273B WHERE IT IS TO BE SEEN THAT LEVY OF PENALTY UNDER SECTION 271E IS NOT AUTOMATIC. 15. WE HEARD SHRI S. SRIDHAR THE LEARNED COUNSEL A PPEARING FOR THE ASSESSEES AND SHRI T.N. BETGIRI THE LEARNED JO INT COMMISSIONER OF INCOME TAX APPEARING FOR THE REVEN UE. 16. IT IS TO BE SEEN THAT THE PARTICULARS OF LOANS TAKEN BY THE ASSESSEES AND REPAYMENTS OF LOANS MADE BY THE ASSES SEES WERE 8 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 COLLECTED IN THE COURSE OF SURVEY CONDUCTED IN THE PREMISES OF SHRI A. KANNAN WHO IS CARRYING ON THE BUSINESS OF MONEY LENDING UNDER THE NAME AND STYLE OF VADAMALAYAN FINANCE. IT IS SEEN FROM THE RECORDS AS OBSERVED BY THE ASSESSING OFFICER THAT SHRI A. KANNAN HAD NO LICENCE TO CARRY ON MONEY LENDING BUSINESS BUT STILL HE WAS CARRYING ON THE SAID BUSINESS. THE DETAILS AVAILAB LE IN THE RECORD SHOW THAT SHRI A. KANNAN HAD BEEN ADVANCING LOANS T O THE PARTIES IN CASH AGAINST PRONOTES. THE PRONOTES ARE CANCEL LED WHEN THE LOANS ARE REPAID. THE NATURE OF THE BUSINESS CARRI ED ON BY SHRI A. KANNAN SHOWS THAT THE TRANSACTIONS OF MONEY LENDING WERE BY AND LARGE MADE BY WAY OF CASH TRANSACTIONS. WHEN THE ASSESSEES WERE ACCEPTING LOANS FROM SHRI A. KANNAN AND REPAYI NG LOANS TO HIM IT IS OBVIOUS THAT THE TRANSACTIONS MUST BE IN CASH AS INSISTED BY SHRI A. KANNAN. THAT ACTS AS A REASONABLE CAUSE IN THE CASE OF THESE ASSESSEES REGARDING ACCEPTANCE AND REPAYMENT OF LOANS TO SHRI A. KANNAN WHO IS THE PROPRIETOR OF M/S VADAMA LAYAN FINANCE. 17. WHILE CONSIDERING THE CIRCUMSTANCES LEADING TO ACCEPTING THE LOANS IN CASH AND WHILE DELETING THE PENALTY LEVIE D ON ASSESSEES UNDER SECTION 271D THE COMMISSIONER OF INCOME TAX (APPEALS) MIGHT HAVE CONSIDERED THIS CIRCUMSTANCE ALSO WHILE COMING TO A 9 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 CONCLUSION THAT THE ASSESSEES HAD REASONABLE CAUSE FOR ACCEPTING LOANS IN CASH. 18. THE EXPLANATIONS GIVEN BY THE ASSESSEES TIME AN D AGAIN BEFORE THE LOWER AUTHORITIES HAVE EQUALLY ESTABLISH ED SIMILAR CIRCUMSTANCES UNDER WHICH THEY WERE CONSTRAINED TO REPAY THE LOANS IN CASH. IN CERTAIN CASES THE CREDITORS INS IST REPAYMENT OF LOANS IN CASH. IN CERTAIN CASES THE REPAYMENT OF LOANS IS PRESSED AND LOANS HAVE TO BE REPAID URGENTLY WITHOUT WAITIN G FOR ANY BANKING FORMALITY. EQUALLY IS THE CIRCUMSTANCE CREATED BY THE MODE OF MONEY LENDING BUSINESS CARRIED ON BY SHRI A. KANNAN . 19. THE COMMISSIONER OF INCOME TAX (APPEALS) WHILE DELETING THE PENALTY LEVIED UNDER SECTION 271D HAS APPRECIA TED THE CIRCUMSTANCE WHICH COMPELLED THE ASSESSEES TRANSAC TION IN CASH; BUT HE HAS SOMEHOW FAILED TO TAKE THE SAME YARDSTIC K IN APPRECIATING THE CIRCUMSTANCES IN WHICH THE ASSESSE ES WERE COMPELLED TO MAKE THE REPAYMENTS OF LOANS IN CASH. 20. THE HONBLE SUPREME COURT IN THE CASE OF HINDUS TAN STEEL LTD. V. STATE OF ORISSA (83 ITR 26) HAS OBSERVED TH AT AN ORDER IMPOSING PENALTY FOR FAILURE TO CARRY OUT A STATUTO RY OBLIGATION IS THE RESULT OF A QUASI-CRIMINAL PROCEEDING AND PENALTY WILL NOT ORDINARILY 10 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 BE IMPOSED UNLESS THE PARTY OBLIGED EITHER ACTED D ELIBERATELY IN DEFIANCE OF LAW OR WAS GUILTY OF CONDUCT CONTUMACIO US OR DISHONEST OR ACTED IN CONSCIOUS DISREGARD OF ITS OBLIGATION. THE COURT OBSERVED THAT PENALTY WILL NOT ALSO BE IMPOSED MERE LY BECAUSE IT WAS LAWFUL TO DO SO. WHETHER PENALTY SHOULD BE IMP OSED FOR FAILURE TO PERFORM A STATUTORY OBLIGATION IS A MATTER OF DI SCRETION OF THE AUTHORITY TO BE EXERCISED JUDICIALLY AND ON A CONSI DERATION OF ALL THE RELEVANT CIRCUMSTANCES. 21. WHEN WE EXAMINE THE FACTS AND CIRCUMSTANCES OF THE CASES PLACED BEFORE US WE FIND THAT THE COMMISSIONER OF INCOME TAX (APPEALS) WHO HAS JUSTIFIABLY DELETED THE PENALTY LEVIED UNDER SECTION 271D HAS ACTED AGAINST THE PRINCIPLE DECLA RED BY HONBLE SUPREME COURT IN THE ABOVE JUDGMENT OF HINDUSTAN ST EEL LTD. V. STATE OF ORISSA. 22. IN THE CASE OF ASSISTANT DIRECTOR OF INSPECTION (INVESTIGATION) V. KUM. A.B. SHANTHI THE HONBLE SUPREME COURT HAS EXAMINED THE OBJECT OF INTRODUCING SECTION 269SS IN THE INCOME-T AX ACT 1961. THE COURT HELD THAT IT IS TO ENSURE THAT A TAXPAYER IS NOT ALLOWED TO GIVE FALSE EXPLANATION FOR HIS UNACCOUNTED MONEY O R IF HE HAS GIVEN SOME FALSE ENTRIES IN HIS ACCOUNTS HE SHALL NOT ES CAPE BY GIVING FALSE EXPLANATION FOR THE SAME. THE COURT OBSERVED THAT DURING 11 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 SEARCH AND SEIZURES UNACCOUNTED MONEY WAS UNEARTHE D AND THEY WOULD USUALLY GIVE THE EXPLANATION THAT HE HAD BORR OWED OR RECEIVED DEPOSITS FROM HIS RELATIVES OR FRIENDS THAT IT IS E ASY FOR THE SO-CALLED LENDER ALSO TO MANIPULATE HIS RECORDS LATER TO SUIT THE PLEA OF THE TAXPAYER. THE HONBLE APEX COURT OBSERVED THAT THE MAIN OBJECT OF SECTION 269SS WAS TO CURB THIS MENACE. 23. IN THE PRESENT CASE NO ADVERSE CIRCUMSTANCES E XISTED AGAINST THESE ASSESSEES AS APPREHENDED BY HONBLE S UPREME COURT IN THE ABOVE DECISION. IN THE PRESENT CASE ALL THE TRANSACTIONS HAVE BEEN DULY RECORDED IN THE BOOKS O F THE CREDITOR AS WELL AS IN THE BOOKS OF THE ASSESSEES. THE LOANS A CCEPTED BY THE ASSESSEES HAVE BEEN MERGED IN THE BUSINESS FINANCE OF THE ASSESSEES REFLECTING IN THEIR BOOKS OF ACCOUNT. TH E FUNDS REQUIRED FOR REPAYMENT OF LOANS WERE ALSO GENERATED OUT OF T HE BUSINESS AS REFLECTED IN THEIR BOOKS OF ACCOUNT. THE DETAILS O F THE PARTIES ARE AVAILABLE ON RECORD. THE ASSESSEES AS WELL AS LEND ERS ARE ALL REGULARLY ASSESSED TO INCOME-TAX. THE IDENTITY OF THE PARTIES ARE BEYOND DOUBT. THE FACTUM OF LOAN AND REPAYMENTS AR E BEYOND DOUBT. THE GENUINENESS OF THE TRANSACTIONS IS ALSO NOT IN DOUBT. IT IS ALSO ESTABLISHED BY THE ASSESSEES THAT THERE EXI STED SIMILAR EMERGENCY FOR REPAYING THE LOAN IN CASH AS THE EME RGENCY WHICH 12 I.T.A. NOS.1820 TO 1825/MDS/13 I.T.A. NOS.1826 & 1827/MDS/13 I.T.A. NOS.1905 TO 1908/MDS/13 PROMPTED THEM TO TAKE LOANS IN CASH. THEREFORE TH IS IS A CASE WHERE THERE IS A REASONABLE CAUSE FOR THE ASSESSEES TO REPAY THE LOANS IN CASH. IN SUCH CIRCUMSTANCES IT IS TO BE SEEN THAT THE VIOLATION OF SECTION 269T IS TECHNICAL. THEREFORE WE FIND THAT THE COMMISSIONER OF INCOME TAX (APPEALS) OUGHT HAVE DEL ETED THE PENALTIES LEVIED UNDER SECTION 271E WHEN IN FACT FOR GOOD REASONS HE WAS DELETING THE PENALTIES LEVIED UNDER SECTION 271D. 24. IN THE FACTS AND CIRCUMSTANCES OF THE CASE WE DELETE THE PENALTIES LEVIED IN ALL THESE CASES UNDER SECTION 2 71E OF THE INCOME-TAX ACT 1961. 25. IN THE RESULT THESE APPEALS FILED BY THE ASSES SEES ARE ALLOWED. ORDERS PRONOUNCED IN THE OPEN COURT AT THE TIME O F HEARING ON THURSDAY THE 31 ST OF OCTOBER 2013 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O .K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI DATED THE 31 ST OCTOBER 2013. KRI. COPY TO: APPELLANT/RESPONDENT/CIT PONDICHERRY/ CIT(A)-VI CHENNAI-34/DR/GF.