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2019 (4) TMI 293 - HC - Income TaxPenalty u/s 271D - violation of Section 269SS - accepting the loans or deposits in cash - persons from whom the loans were availed were having bank accounts - loans were repaid through cheques drawn in the name of the lenders - non-utilization of the money by the assessee for any of his business purposes - HELD THAT:- reasonable cause contemplated under Section 273B should be a reasonable cause as to why or what was the reason which compelled the assessee to accept the loans or deposits in cash. In other words, it should be proved that there existed reasonable and acceptable cause for not accepting the loans or deposits through crossed cheques or demand drafts. When analysed based on the dictum as mentioned above, none of the facts contended or proved by the appellant will constitute a valid explanation or reasonable cause coming within the purview of Section 273B. The mere proof that the loans were repaid through cheques drawn in the name of the lenders or that there was no attempt to induct black money into the business, itself cannot be considered as a reasonable cause or as a compelling circumstance under which the mandate of Section 269SS can be violated. It cannot be termed as a reasonable cause contemplated under Section 273B to condone the violation. Hence, we are of the opinion that, the appellant has not succeeded in bringing the case within the ambit of Section 273B, warranting exoneration from imposition of penalty under Section 271D. - Decided in favour of revenue
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