- (1.) THE present appeal filed under Section 260A of the Income -tax Act, 1961 (hereinafter referred to as 'the Act'), arises out of the order of the Income -tax Appellate Tribunal dated February 26, 1999. It has been admitted, vide order dated February 1, 1999, on the following substantial questions of law: 1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the amount of Rs. 1,00,000 is nothing but advance taken by the assessee and the provisions of Section 269SS do not apply to the facts of the case? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in deleting the penalty under Section 271D of the Income -tax Act, 1961, in respect of the assessment years 1990 -91?
(2.) BRIEFLY stated the facts giving rise to the present appeal are as follows: The present appeal relates to the assessment year 1990 -91. The respondent -assessee had accepted various amounts from M/s. Babu Ram Ganga Ram, Suriyawan, Varanasi, during March, 1991, and the total amount came to Rs. 1,00,000. The amount was received otherwise than by way of account payee cheque or bank draft. The assessing authority initiated penalty proceedings under Section 271D of the Act on the ground ; that the respondent -assessee had violated the provisions of Section 269SS of the Act and, vide order dated June 12, 1991, imposed a sum of Rs. 1,00,000 as penalty. In appeal, the penalty was set aside by the Commissioner of Income -tax (Appeals), Varanasi, vide order dated March 16, 1993, which has been upheld by the Tribunal.
(3.) WE have heard Sri R.K. Upadhyaya learned Counsel for the Revenue and Sri S.K. Garg learned Counsel for the respondent -assessee.;