TMI Blog2003 (12) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... ustice we condone the delay. 3. The ground raised by the assessee is that the CIT(A) erred in upholding penalty of Rs. 10 lakhs imposed on the assessee under section 271D for alleged contravention of section 269SS namely accepting loan or deposit of more than Rs. 20,000 in cash. 4. During the assessment proceedings the Assessing Officer noticed that the assessee has accepted/received loans of Rs. 20,000 or more otherwise than by a crossed cheque/draft. The details of such loans and deposits are as under : 1. Shri Hastimal R. Jain Rs. 3,00,000 2. Shri Parasmal R. Jain Rs. 1,00,000 3. Shri Mangilal R. Jain Rs. 1,00,000 4. Shri Pankaj P. Jain Rs. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere unaccounted money has been found. The facts of the case under consideration are that the amounts were deposited in cash by these persons in assessee s bank account on 31-12-1997. These persons were directors or members of the assessee-company and the amounts under consideration were the amounts declared by them under VDIS in their personal capacity as they did not have personal bank account, the said amounts were deposited in assessee company s bank account directly. The fact that the amounts were deposited in cash in assessee-company s bank account were declared in the VDIS form as well as in the certificate issued by the CIT - Baroda. The ld. AR further submitted that there are number of judgments wherein it has been held that if ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty - 269SS not to apply to genuine transactions without unaccounted money. Any other persons means not intimately connected - Delhi Ginning 80 ITD 484 (Hyd.). Technical or venial breach not to be penalized - ITO v. Sunil 80 TTJ 1 (Pune) (TM). Sreenath Builders 66 TTJ 113 (Ahd.) Bombay Conductors Electrical Ltd. 56 TTJ 580 (Ahd.). Cash not with a view to explain unaccounted cash. No. 271 D-80 TTJ 82 (Delhi). Ignorance of law - reasonable 271D - Dr. Deepak 58 TTJ 524 (Bom.). No conscious disregard of 269SS - No. 271D - ITO v. Rajendra Trading, 48 ITD 210 (Chd.). If deposit genuine, No. 271D - Joshi Bros. [2003] May ACAJ-102. Directors unilaterally bringing money for project - Chandra Cement 68 TTJ 35 (JP)." 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany s bank account on the basis of such advice of tax consultant. It is pertinent to mention that the declaration made by these persons under the VDIS, these bank accounts have also been mentioned and the declaration under VDIS of these persons have been accepted. Strictly speaking these cash deposits are neither loans nor deposits but in nature of accommodation entries which is in the interest of revenue as well as the assessee. We have also noticed that this is not a case where the lower authorities found anything against the object of introducing of section 269SS as there was neither a search nor such unaccounted money was unearthed which has been manipulated in the records. The assessee was under a bona fide belief that the declarat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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