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2017 (5) TMI 1652 - ITAT CHENNAIPenalty u/s 271D r.w.s. 274 - assessee has received loans from certain creditors in cash, amounting to ₹3,00,000/- - assessment under section 153C r.w.s. 153A - Held that:- If at all to believe the contentions of the assessee, what the assessee did with those advances of ₹.50,000/- + 2,00,000/- stated to have received from Shri Natesan so that the assessee was put to take loan for repayment of the above amount. As rightly noticed by the authorities below, the assessee has no pressure from Shri Natesan to get back the money. The first advance was given on 01.04.2007 and second advance on 31.12.2007. The same were settled on 31.03.2008. When Shri Natesan could wait for one whole year, i.e., from 01.04.2007 to 31.03.2008, it is not palatable that he would not have waited for another 3 to 4 days, if the assessee had to repay the amount by cheque. It could be clearly established that no such emergency/urgency existed for the assessee to take loan in cash. Since the assessee having failed to establish such material evidence to show that there was urgency for the assessee to avail of loan in cash, the amount taken from the relatives clearly fall under the provisions of section 269SS of the Act and definitely would not come under the exception clause of section 271D. It is not the case of the assessee that the assessee was under bankruptcy or under any emergency situation; she borrowed money from the relatives to meet the expenses or so. In this case, the situation of the assessee was to repay that money she already received from the so called Shri Natesan. To repay the money of ₹.2,50,000/-, which was already received by the assessee, what was the necessity of taking loan of ₹.3,00,000/-, was not at all explained by the assessee either before the Addl. CIT during the course of penalty proceedings or before the ld. CIT(A) during the appellate proceedings or even before the Tribunal. - decided against assessee
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