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2013 (8) TMI 486 - HC - Income TaxPenalty under section 271D of the Income Tax Act – Violation of bar provided by Section 269SS of the Act, which provides all transactions above Rs.20,000/- to be made through banking channels – Held that:- There is no evidence to show that there is urgent requirement of the fund for purpose of repaying to the bank - There is no deadline set by the Bank for repayment of the loan amount - Assessee had taken loans from four individuals in cash of Rs. 2 lacs each in violating Section 269SS of the Act - Section 273-B, in an exception to Section 269-SS, and provides that no penalty is imposable on the person or assessee as the case may be for any failure referred to in the said provisions (including Section 269-SS), if he proves that there was reasonable cause for the said failure – Held that:- The assessee, could not satisfactorily give explanation for the alleged hurry in which he had to arrange the money to be deposited in bank for release of the property - The findings, whether there was any reasonable cause for non-compliance of Section 269SS are findings of fact. The Tribunal is the last forum for recording such findings - All the Income Tax authorities including the Tribunal have concurrently held that there was no reasonable cause inasmuch as the story set up by the assessee to arrange the money in hurry to save the honour of the family was not proved, the assessee would not get the benefit of Section 273B of the Act – Decided against the Assessee.
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