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2014 (5) TMI 1052 - AT - Income Taxpenalty u/s 271D and 271E - ITO has found during the survey proceedings that the assessee had violated the provisions of both the sections 269SS and 269T of the Income Tax Act as the assessee had accepted the loans in cash exceeding ₹ 20,000/- and repaid the loan exceeding ₹ 20,000/- - Held that:- From the penalty order, the facts are very clear that the assessee had borrowed ₹ 15.00 lakhs in cash and repaid 15.00 lakhs in cash in the assessment year 2008-09. Again he borrowed 20 lakhs on two occasions and repaid ₹ 24 lakhs in cash in the assessment year 2009-10. In the assessment year 2010-11, again, the assessee borrowed ₹ 20 lakhs and repaid in cash. In the assessment year 2011-12, he borrowed ₹ 20 lakhs and repaid ₹ 23 lakhs. Further, in the assessment year 2012-13, the assessee had repaid ₹ 13 lakhs in cash. These facts are not disputed by the assessee. He has not given any explanation neither before the Assessing Officer nor before the ld. CIT(Appeals) or even before us. He is not in a position to explain what is the reasonable cause for accepting loans in cash and repaid the same in cash. It is very clear from the order of the Assessing Officer that he has given as many as number of opportunities to explain his case before him. However, the assessee has not utilized those opportunities and he was not in a position to explain as to what was the reason for accepting and repaying monies in cash, which is contrary to the provisions of sections 269SS and 269T of the Act. After carefully going through the orders of the Assessing Officer and ld. CIT(Appeals), we are of the opinion that the assessee is not in a position to give any explanation either before the Assessing Officer or before the ld. CIT(Appeals) and therefore, he has avoided to attend before the lower authorities. Now, the ld. Counsel for the assessee is requesting to remit the matter back to the ld. CIT(Appeals), which appears to be not fair, just and proper. Once the assessee obtained loans in cash exceeding ₹ 20,000/- and repaid it in cash, if this factual position is correct, the only option for the assessee is to explain the reasons under what circumstances the assessee has obtained the loans and repaid the loans in cash as prescribed under sections 269SS and 269T. Other materials and arguments of the assessee are irrelevant and immaterial in the context of the present case. In this case, the assessee has not explained under what circumstances he has borrowed loans in cash and repaid in cash either before the Assessing Officer or before the ld. CIT(Appeals). Even before us, no explanation was given. Under these facts and circumstances, we are of the opinion that this is a fit case to impose penalty - Decided against assessee.
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