TMI Blog2014 (1) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... or loan - No such materials are available - In the absence of any proof to show that the transaction was a genuine transaction and that there was a reasonable cause for receiving the amount in cash, the Tribunal was justified in rejecting the contentions of the appellant - The source of funds of the creditors was not from the Bank and introduction of black money cannot be ruled out - There is a clear finding by the assessing officer that no proof was furnished regarding earnings of agricultural income by the creditors – Decided against assessee. - ITA. No. 279 of 2013 - - - Dated:- 18-12-2013 - Mrs. Manjula Chellur And A. M. Shaffique,JJ. JUDGMENT Shaffique, J. The appeal is filed by the assessee against the order of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sition of the source of fund is accepted by the Department is a reasonable cause against levy of penalty since the violation becomes technical. It is further contended that the following question of law arises for consideration in the above appeal: "(i) Whether on the facts and in the circumstances of the case and having regard to the principle of law laid down by this Hon'ble Court in the case of CIT v. P.K. Shamsudheen in I.T.A. No. 239 of 2011, the Appellate Tribunal justified in law and facts in reversing the order of the Commissioner of Income Tax (Appeals), Cochin, in I.T.A. No. 4/Alp./CIT(A)-IV/2010-11 and restoring the penalty levied under S.269SS by the Joint Commissioner of Income Tax? (ii) Did not the Appellate Tribunal err i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authority vested with the power to impose penalty has a discretionary power not to levy penalty. The Tribunal also found that the failure in the case is not receiving the loan, but the receipt or acceptance of amounts exceeding Rs. 20,000/- by way of account payee cheques or demand drafts. If the assessee is capable of explaining to the satisfaction of the concerned authority that there was a reasonable cause or failure to receive the loan or deposit by way of account payee cheque or demand draft, then the penalty shall not be levied. Therefore reasonable cause for receiving the loan or deposit in cash has to be proved by the assessee. 6. It is not in dispute that for exercising jurisdiction under S.269SS read with S. 271D, there sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. Having regard to the settled position of law, the burden is on the assessee to prove that there was reasonable cause for receiving cash from various persons. In the absence of any such proof we are of the view that the Tribunal was justified in rejecting the contentions of the appellant. Now coming to P.K.Shamsuddin's case, the contention taken was ignorance of law. That apart, it was found that the assessee took cash from relatives and friends who had taken loan from Banks for helping the assessee and such persons could not have issued cheques. It is in that circumstances, when the source of funds were found to be accepted by the Department, the Division Bench opined that there is no tax evasion or black money introduced in the busin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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