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2014 (9) TMI 606 - AT - Income TaxPenalty u/s 271D – Sufficient cause as provided u/s 273B – Deposits accepted in contravention to section 269SS/269T or not - Whether the assessee was prevented by sufficient cause within the meaning of S. 273B or not - Held that:- section 273 B comes into play when the assessee has committed a lapse but the assessee can demonstrate that there was reasonable cause for having committed that lapse - The facts relating to the factors leading to a lapse can only be known to the persons committing that lapse are best in the knowledge of person committing the lapse, and, therefore, the onus on him to elaborate the same - the explanation of the assessee deserves to be accepted - It was a widespread, even if erroneous, belief that the provisions of Section 269 SS do not apply to the credit cooperative societies, and it is also evident from the fact that even the CBDT has taken notice of imposition of resultant penalties in large number of cases, and issued a circular highlighting that these penalties should not be imposed indiscriminately and without considering the scheme of Section 273B - Such a widespread belief, by itself, can be viewed as a reasonable cause for assessee's bonafide belief – thus, the AO is directed to delete the penalties of the assessee – Decided in favour of assessee.
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