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2021 (2) TMI 729 - ITAT INDOREPenalty levied u/s 271D - accepting unsecured loan above ₹ 20,000/- violating provisions of section 269SS - whether case of the assessee should falls under the provisions of Section 273B ? - reasonable cause, leading to failure of complying the provisions of Section 269SS - HELD THAT:- It is not the case that the place where the assessee is residing has no banking facility nor it is demonstrated that all the cash creditors are agriculturists having no banking facility in the area of their residence. The assessee in the instant case has set up a petrol pump allotted by Indian Oil Corporation (In short ‘IOC’). All the transactions with IOC are to be carried out through banking channel. In the present times the bank transfers are quick through National Electronic Funds Transfer (In short ‘NEFT’) which hardly takes a day to transfer the amount. Ld. Counsel for the assessee failed to controvert this fact and the general submission that the cash loans were taken to purchase the land for setting up a petrol pump and is in the nature of business expediency fails to find any merit. In our view it was not a reasonable cause for the said failure of taking cash loan exceeding ₹ 20,000/- Assessee do not deserve any immunity from paying the penalty u/s 271D of the Act by taking the shield/cover of Section 273B of the Act claiming it to be a reasonable cause for the said failure. We accordingly set aside the finding of Ld. CIT(A) and confirm the action of the Ld. A.O levying the penalty u/s 271D - Decided in favour of revenue.
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