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2009 (7) TMI 870 - ITAT AHMEDABAD-DPenalty u/s 271D - reasonable cause u/s 273B - Violation of section 269SS - Cash borrowings - Assessee-company is a builder and developer of lands. It is natural for it to look for purchase of lands which it can develop and make profits - assessee no doubt had a cash balance of above Rs. 12,00,000 in its books on 1st March, 2002, but apparently the market price of the lands was around Rs. 15 to Rs. 20 lakhs and therefore. the assessee, instead of using up the cash balance in its books and restricting the borrowing to a much lesser amount, resorted to borrowing the sum of Rs. 15 lakhs from N.K. Chemist in cash - Now there may be many ways in which a business deal can be put through and it is well-settled that essentially it is for the businessman to put a transaction through in the manner best suited to his interests - In these circumstances it appears to me that the assessee resorted to cash borrowing in violation of s. 269SS only because of the advantages which the ready cash back-up would give - Appeal is allowed
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