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2012 (4) TMI 211 - ITAT AHMEDABAD
Kamen Jaswantlal Shah Versus Income-tax Officer, Ward 5(3), Baroda
Penalty under section 271D and 271E - AO noticed that the assessee has accepted and repaid loan in cash violating section 269SS and 269T - assessee contented that penalty is not leviable when assessee was having reasonable cause as per section 273B - Held that :- It was explained by the assessee before the Revenue authorities that the business of the assessee was such in nature where the expenses have to be incurred in cash immediately whereas the collection of hire charges received after sometime - we find that the expenditure and repayment of temporary loan in cash from the relatives and friends each amounting below Rs. 20,000/- was in accordance with commercial expediency of assessee's business as the nature of business of the assessee is such - as reasonable cause has been proved no penalty will be livable - appeal of assess allowed.