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2013 (4) TMI 113 - HC - Income TaxDeleting the penalty imposed under Sections 271-D and 271-E of the Income Tax Act, 1961 - Violation of provision of Section 269-SS of the Act - Held that:- It was pointed out that it has been established from the materials on record that the amounts were received in cash because of urgency of business needs. It is further pointed out that the Tax Payer being a Civil Contractor required urgent funds and he approached his brothers Shri Jayeshbhai Thakkar and Shri Raghubhai S. Bhatt and received cash for incurring day-to-day business expenditure. From those facts, it was pointed out that there was nothing to suggest that the aforesaid transactions were not genuine. Similarly, as regards the question of penalty imposed on the Tax Payer under Section 271-E of the Act - Held that:- The payment of Rs.81,970/- was made through pay order and not in cash by the Tax Payer to M/s. I.V.P. Ltd. In such circumstances, it was found by the CIT (Appeals) that it was neither a cash payment nor a repayment of loan. In view of the aforesaid facts, we find that no substantial question of law is involved. The finding on the question of reasonableness as provided under the Act is basically the question of facts and we do not find any reason to interfere with such concurrent findings based on appreciation of evidence - Appeal is allowed in favour of assessee.
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