TMI Blog2012 (7) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... is warranted - in favour of assessee. - I.T.A. No.3060/Ahd/2011 - - - Dated:- 8-6-2012 - Shri D.K. Tyagi, And Shri Anil Chaturvedi, JJ. Department by : Shri Vinod Tanwani, Sr. D.R. ORDER PER : D.K. TYAGI, JUDICIAL MEMBER This is Revenue s appeal against the order of ld. CIT(A)-V, Baroda dated 12.09.2011 passed in appeal No. CAB/(A)V-71/10-11. 2. Revenue has taken following ground of appeal:- In the law and on the facts of the case, the ld. CIT(A) erred in deleting the penalty of Rs.11,75,000/-, levied u/s 271D of the I.T. Act, ignoring the fact that the assessee failed to establish any reasonable cause for contravention of the provisions of Section 269SS and allowing the contravention of the contravention of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stablish any pressing need for unavoidable circumstance which led him to obtain these amounts in cash. She, therefore, concluded that the assessee has contravened the provisions of Section 269SS and imposed penalty of Rs.11,75,000/-. 5. Before ld. CIT(A) the assessee placed reliance on the following submissions:- FACTS OF THE CASE. 1. The assessee was doing the business under the name and style M/s Fixo Fit Well as proprietor filed his return in individual capacity on 27.11.2006 declaring her total income at Rs.4,29,600/-. 2. The return was selected under cess and the learned Assessing Officer has added the sum of Rs.17,00,000/- to the returned income on account of cash credit u/s 68. 3. The learned C.I.T.(Appeal)-V had deleted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enclosed for the immediate reference and record. (C) The alleged amount of cash deposit is nothing but the cheques discounting amount. The amount was never placed as deposit with the petitioner. (D) It has been held by the various courts that the penalty in situation like this, where the petitioner is maintaining the current account with the person alleged to have given loan/deposit may not be levied. Copy enclosed for the immediate reference. In view of the intentions of the legislature and the genuineness of the transaction and the need of the petitioner of discounting of the cheques, I earnestly pray your honour to delete the penalty under section 271D of the I.T. Act, 1961. The area has also submitted copies of the following jud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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