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2014 (8) TMI 603 - HC - Income TaxPenalty u/s 271D – Cash loans received from creditors – Reasonable cause for taking loans explained by assessee or not - Held that:- The sundry loans have been extended by the agriculturists within the limits prescribed u/s 269SS of the Income Tax Act and the bonafides of the transactions is not doubted - The genuineness of the sundry creditors have also been verified - The assessee has also given reasonable explanation for availing such loan, which has been accepted by the Authorities below - the CIT(A) and Tribunal are justified in holding that there was no case for invocation of Section 271D of the Income Tax Act on the alleged violation of Section 269SS because, as the assessee has satisfied the test of reasonable cause as required u/s 273B of the Income Tax Act - Relying upon Asst. Director of Inspection (Investigation) Versus Kumari AB Shanthi [2002 (5) TMI 4 - SUPREME Court] - the genuineness of the creditors have been verified and the transactions were never doubted by the Authorities below – there was no reason to interfere with the order of the Tribunal as the reasonable cause is a finding of fact – Decided against Revenue.
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