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2016 (1) TMI 1497 - ITAT MUMBAIPenalty proceedings u/s. 271D - violations of Section 269SS - cash loan received - HELD THAT:- It is our considered view that provisions of Section 269SS of the Act are strict provisions making taxpayer liable for penalty for taking loan or deposit of ₹ 20,000/- or more in cash . There are provisions u/s 273B of the Act when the reasonable cause is shown , then the penalty is not exigible. The provisions were enacted to check the menace of tax evasion so that the taxpayer is not allowed to give a false explanation for his un-accounted money or if has introduced some false entries in his accounts, he shall not escape by giving false explanations. Thus, it is not only the loan transaction which should be genuine but the taxpayer should come forward with reasonable cause as provided u/s 273B of the Act to get out of clutches of Section 269SS of the Act read with Section 271D of the Act. Thus, both the above conditions are to be cumulatively satisfied by the taxpayer. As assessee firm is not able to show the reasonable cause as is referred to in Section 273B of the Act for taking the loan in cash from M/s Lakshmi Trading Company in violation of Section 269SS of the Act read with Section 271D of the Act, thus, in our considered view the penalty imposed by the authorities below need to be confirmed to that extent while the penalty remaining for reasons and manner of deletion as stated above in preceding para’s is hereby deleted.
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