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2014 (5) TMI 436 - HC - Income TaxPenalty u/s 271D - Acceptance of loan in Cash by the appellant firm from its agriculturist customer - violation of provisions of section 269SS - Refusal to take cognizance of extract of cash book – Documentary evidence furnished or not – Held that:- it was noticed by the appellate authority that the plea of due exigency was not acceptable as according to it the loan was taken for discharging another bank loan and in such circumstances it could be by cheque. - it was concluded that the assessee had failed to establish that there existed reasonable cause in taking or accepting any loan or deposit otherwise than by an account payee cheque or account payee bank draft. - The view which has been taken by the Assessing Officer, CIT (A) and the Tribunal concurrently is a plausible view and it cannot be said that there was any error in the approach adopted by them. The assessee-firm had accepted loan in cash on 29.12.2005 from Shri Jugraj Singh - The assessee-firm was issued repeated show cause notices dated 19.1.2009, 24.4.2009 and 14.5.2009 but the assessee did not avail the opportunity to give any explanation justifying the transaction of accepting loan of ₹ 5 lacs from Jugraj Singh in cash in violation of provisions of Section 269SS of the Act - cash book showing deposit of ₹ 5 lacs from Jugraj Singh and on the other side there was entry of ₹ 5,10,726/- in cash deposited with PSB is submitted - even this was unsigned and in any case this by itself would not justify taking of loan in cash from Jugraj Singh. There is no reason to interfere in the order - Tribunal had recorded finding of reasonable cause under Section 273B of the Act and on that basis, it was held that no substantial question of law arose. – Decided against Assessee.
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