Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 894 - DELHI HIGH COURTPenalty u/s 271D & 271E - acceptance and repayment of loan or deposit in excess of Rs. 20,000/- in cash from/to any other person - violation of the provisions of Section 269SS and Section 269T - ITAT deleted the levy - Held that:- Order of the Tribunal stating that since the business of the assessee itself is to collect and repay deposits, there can be no violation of the provisions of Section 269SS and Section 269T is not the only reason given by the Tribunal for approving the orders of the CIT(Appeals) cancelling the penalties. Facts taken into consideration by the Tribunal in accepting the assessee's explanation that there existed reasonable cause in mobilizing these deposits in rural and semi-urban areas within the meaning of Section 273B. The Tribunal has in substance relied on its earlier order in the case of M/s Sahara India Financial Corporation Ltd., (a group company) () that the finding of the Tribunal that there was reasonable cause for the default within the meaning of 273B is a question of fact which cannot be disturbed by the High Court as there was no material or evidence brought before the Court to show that the finding was perverse or was of such nature that no reasonable person, duly instructed on the facts and the legal position, would have reached. In the present case also the revenue has not been able to bring on record any material to show that the finding of the Tribunal as to the existence of reasonable cause is perverse - also as decided in CIT v. Parma Nand [2002 (11) TMI 13 - DELHI HIGH COURT] and CIT v. ITOCHU Corpn. [2004 (5) TMI 53 - DELHI HIGH COURT] that whether or not there was reasonable cause for the default is a question of fact which does not give rise to a substantial question of law unless the finding is perverse or irrational. Thus having regard to the finding of fact entered by the Tribunal that there was reasonable cause for the defaults, no substantial question of law arising for consideration - in favour of assessee.
|