IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN TUESDAY, THE 1ST JUNE 2010 / 11TH JYAISTHA 1932 ITA.No. 739 of 2009() --------------------- ITA.479/COCH/2004 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELLANT: ----------------------------- THE COMMISSIONER OF INCOME TAX, CALICUT. BY ADV. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/RESPONDENT: --------------- SMT.A.P.BEENA, SOUPARNIKA, JANATHA ROAD, VATAKARA. ADV. SRI.ABRAHAM GEORGE JACOB THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 01/06/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & P.S.GOPINATHAN, JJ. .................................................................... I.T. Appeal No.739 of 2009 .................................................................... Dated this the 1st day of June, 2010. JUDGMENT Ramachandran Nair, J. Heard Senior Standing Counsel appearing for the appellant and counsel appearing for the respondent. Appeal is filed against orders of the Tribunal sustaining first appellate authority's order cancelling penalty levied under Sections 271D and 271E of the Income Tax Act for violation of Section 269SS and 269T of the Act. It is seen that first appellate authority cancelled the penalty only because purchases are from another sister concern owned by respondent's husband. Accepting the explanation of the assessee, first appellate authority cancelled the penalty which was confirmed by the Tribunal on second appeal filed by the department. We do not find any substantial question of law arising from the orders of the Tribunal because on facts both the appellate authorities found that there is no likelihood of any evasion of tax on account of the technical breach committed by the respondent in paying cash for the purchases. We, therefore, dismiss the 2 appeal. However, we make it clear that our judgment applies to the peculiar facts of this case only. C.N.RAMACHANDRAN NAIR Judge P.S.GOPINATHAN Judge pms