(Per : HONOURABLE MR.JUSTICE V. M. SAHAI) Learned Standing Counsel Mrs. Mauna M. Bhatt appearing for the appellant has urged that the decision in the case of M/s. Akshar Gems v. ACIT rendered by the Tribunal has been challenged in Tax Appeal No.2028 of 2009 which has been admitted on 29.8.2011 by the following order :-
"Counsel for the Revenue submitted that for the purpose of income tax, partner and partnership are two separate distinct entities as held by decision of Apex Court in case of Commissioner of Income-tax, West Bengal v. A.W. Figgies and Company and others reported in (1953) 24 ITR 405(SC).
Tax Appeal is admitted for consideration of following question of law :
"Whether in the facts and circumstances of the case and in law, was the Appellate Tribunal right, in deleting the penalty imposed u/s.271D and 271E of the Act for violating the provisions of section 269SS and 269T of the Act holding that the money brought in the firm by a partner and withdrawal by the partners from the firm are between the firm and the partners and the transactions are not in the nature of loan or deposit within the meaning of provisions of section 269SS and 269T of the Act?"
Therefore, this appeal is also admitted. We formulate the following substantial question of law which arises in this appeal as under :-
"Whether the Appellate Tribunal is right in law and on facts in deleting the penalty of Rs.16,00,000/- levied under Section 271E of the Act for violating the provisions of Section 269SS and 269T of the Act holding that the money brought in the firm by a partner and withdrawals by the partners from the firm are between the firm and the partners and the transactions are not in the nature of loan or deposit within the meaning of provisions of Section 269SS and 269T of the Act, without considering the fact that the firm and the partner are two separate entities as defined in sub-Section (31) of Section 2 of the I.T. Act, 1961 ?"
Issue notice to the other side. Paper book be filed within 3 months.
Sd/-
[V.
M. SAHAI, J.] Sd/-
[N.
V. ANJARIA, J.] Savariya Top