TMI Blog2014 (4) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... banking channel while accepting amount - Assessee could not justify byepassing of banking channels - Being 'sick industrial unit’ is not sufficient for deviating from banking channel. In absence of reasonable cause, assessee cannot take benefit of provisions of section 273B of Act - CIT(A) was justified in upholding penalty levied u/s.271D – Decided against Assessee. - ITA No. 1641/PN/2012 - - - Dated:- 8-10-2013 - Shri Shailendra Kumar Yadav and Shri R.K. Panda, JJ. For the Appellant : Shri M.K. Kulkarni For the Respondent : Smt. Shailja Rai ORDER Per: Shailendra Kumar Yadav: This appeal has been filed by the assessee on following grounds : 1) On the facts and circumstances of the case and in law the Ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... During assessment proceedings u/s.143(3) in case of assessee for A.Y 2007-08 Assessing Officer noticed that assessee has accepted deposit in cash of Rs.2 lakhs from Sri P.G. Salunkhe and Rs.50,000/- from Shetkari Kamgar Gramin Bigarsheti Patsanstha Ltd. in contravention of the provisions of section 269SS. Consequently, on a proposal by Assessing Officer, penalty proceedings u/s.271D of the Income Tax Act were initiated by the Range Addl.CIT. The penalty levied by the Assessing Officer under provisions of Section 271D was confirmed by CIT(A). Same has been opposed before us. On other hand, Ld. Departmental Representative supported the same. 3. Ld. Authorised Representative for assessee heavily relied on the decision of ITAT, Pune in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 269SS are not applicable. There is no dispute that assessee has accepted the amount in cash from loan and the same was deposited in bank account of assessee in contravention of provisions of section 269SS of the Act. CIT(A) has examined whether there was any reasonable cause on part of assessee not to comply with the provisions of section 269SS. While dealing with the penalty provisions, the 'reasonable cause would mean a cause which is beyond the control of assessee. Reasonable cause which prevents the reasonable man or man of ordinary prudence acting under normal circumstances, without negligence or inaction or want of bona fide explanation. Assessee has stated that it was declared as 'sick industrial unit in terms of section 3(1)(e) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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