(-1-) MGN IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL LODGING NO.1515 OF 2006 The Commissioner of Income Tax...Appellant Vs. M/s.N.H. Securities Ltd.........Respondent Mr. P.S.Sahadevan, for the Appellant. Mr. A.K. Jasani, for the Respondent. CORAM: F.I. CORAM: F.I. CORAM: F.I. REBELLO REBELLO REBELLO & R.S.MOHITE,JJ. R.S.MOHITE,JJ. R.S.MOHITE,JJ. DATED: 5TH FEBRUARY,2008 DATED: 5TH FEBRUARY,2008 DATED: 5TH FEBRUARY,2008 P.C.: P.C.: P.C.: . The Revenue has preferred this Appeal on the following questions:- i) Whether on the facts and circumstances of the case the Hon’ble Tribunal was right in holding that acknowledgement of debts by the assessee company by passing journal entries in the books of accounts would not come within the ambit of re-payment and acceptance of loans or deposits of money otherwise than by an account payee cheque or bank draft within the terminology of Section 269SS and 269T? ii) Whether on the facts and circumstances of the case and in law the Hon’ble Tribunal was right in deleting the entire penalty (-2-) levied u/s.27IE and 271D of the Income Tax Act, 1961 without appreciating the fact that the assessee had accepted the fact of loan transactions in the books though the same were in the nature of journal entries.? The learned Tribunal in its order has noted as under:- It is strange to note that all these figures mentioned above pertains to the financial year ending 31.3.2000 relevant to assessment year 2000-01 as is apparent from the audit report pertaining to the assessment year 2000-01. This relevant information in the audit report appears at Pages 50 and 51 of the Paper Book. We have also gone through the statement of accounts in the name of these four parties for the year under consideration appearing in the Paper Book at Page-10 onwards and we do not find any reference to such figure." The Assessee was in Appeal in respect of the assessment year 1999-2000. Considering the finding of fact recorded by the Tribunal the question as framed would not arise and consequently appeal dismissed. (R.S.MOHITE, J.) (R.S.MOHITE, J.) (R.S.MOHITE, J.) (F.I.REBELLO, J.) (F.I.REBELLO, J.) (F.I.REBELLO, J.)