TMI Blog2014 (8) TMI 603X X X X Extracts X X X X X X X X Extracts X X X X ..... me 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. - Tax Case (Appeal) Nos.940 & 941 of 2013 & M.P.No.1 of 2013 - - - Dated:- 11-8-2014 - R. Sudhakar And G. M. Akbar Ali,JJ. For Appellant : Mr. T. Ravikumar Standing Counsel for Income Tax JUDGMENT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were sundry loans for a sum of ₹ 70,54,153/- as on 31.3.2007. The documents submitted by the assessee were verified, more particularly the ledger, which reflected cash loan accepted by the assessee for an amount not less than ₹ 18,000/-. The General Ledger Pages 247 to 255 showed loans by cash . In the course of this proceeding, the Department wanted to verify the genuineness of those transactions and on 01.12.2009, the Authorised Representative of the appellant submitted 24 individuals with address at Kanyakumari District and have claimed that they were agriculturists and they had income out of agriculture and they have lent the amount to the assessee without interest. Consequent to this, the Department completed the assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ters that the above amount are given as hand loan basis returnable on short notice without interest since they do not have bank account, they paid the amount in cash to the appellant. Once having accepted the genunity of the loan creditors and also all the loans received are below ₹ 20,000/- in cash there is no cash for the assessing officer to invoke the provisions u/s 269SS as can be seen from the notice issued by the Addl. Commissioner of Income Tax vide her letter dated 07.06.2010 in which the appellant was asked to furnish details of persons who have lend money in excess of ₹ 20,000/- contravening provision of section 269SS of the IT Act. Since all the loans received in cash are below ₹ 20,000/- and accepted all the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the agriculturists, who did not have bank accounts, 24 individuals were verified by the Assessing Officer and the documents submitted by them were accepted by the Assessing Officer as genuine and consequently, the sundry loan account has been found to be in order and on that premise, the Tribunal confirmed the order of the Commissioner of Income Tax (Appeals) holding that there is no case to doubt or lack credibility in the assessee's version that these sundry loans were taken from agriculturists and the purpose for which the loan was availed would fall within the parameters of the provision of Section 273B of the Income Tax Act that there was reasonable cause for the assessee to avail the loan. The order of the Tribunal is extracted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the requirements of Section 269SS of the Income Tax Act. Hence, he submits the order of the Tribunal may be set aside. In support of his contention, he relied on the decision reported in (2012) 340 ITR 560 (P.Baskar V. Commissioner of Income Tax). 7. We heard learned Standing Counsel appearing for the Revenue and perused the materials placed before this Court. 8. We find in this case that the Authorities below have on facts clearly accepted, after proper verification, that the sundry loans have been extended by the agriculturists within the limits prescribed under Section 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel appearing for the Revenue reported in (2012) 340 ITR 560 (P.Baskar V. Commissioner of Income Tax) does not apply to the facts of the present case, as in that case, the Tribunal as well as the Authorities below found that there was no reasonable cause shown by the assessee for taking cash loan. 11. The facts in that case are different from the case on hand and it stands distinguished on that account. Here, the assessee has shown reasonable cause for availing loan from the agriculturists, which was accepted by the Authorities below. The genuineness of the creditors have been verified and the transactions were never doubted by the Authorities below. Hence, we find no reason to interfere with the order of the Tribunal as the reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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