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2014 (1) TMI 712 - HC - Income TaxPenalty u/s 271D in respect of section 269SS - Held that:- After 30th of June, 1984 there is a mandate that no person shall accept or take loan or deposit from any person other than an account payee cheque or account payee bank draft, if such loan or deposit exceeds Rs. 20,000 - The burden is on the assessee to prove that there was reasonable cause for receiving cash from various persons - Setting up an industry/business is a long process and it is for the assessee to demonstrate with sufficient material that he required cash urgently to meet his requirements - It was open for him to prove that he had applied for loan and he was awaiting for loan - No such materials are available - In the absence of any proof to show that the transaction was a genuine transaction and that there was a reasonable cause for receiving the amount in cash, the Tribunal was justified in rejecting the contentions of the appellant - The source of funds of the creditors was not from the Bank and introduction of black money cannot be ruled out - There is a clear finding by the assessing officer that no proof was furnished regarding earnings of agricultural income by the creditors – Decided against assessee.
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