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2014 (10) TMI 889 - AT - Income TaxPenalty levied u/s.271D - Held that:- The assessee has been taking consistently inconsistent stand before different authorities. The assessee is trying to weave a cover up stories to cloth his follies. The explanations put forth are after thought which the assessee is trying to fit in by hit and trial. Therefore, it is difficult to believe on the stand taken by the assessee before the Tribunal. Be that as it may, it is an un-denying fact that the assessee has taken cash loan of ₹ 20.00 Lakhs in violation of provisions of section 269SS. Here it would be relevant to mention that whether the loan was taken for personal purpose or for the firm the provisions of section 269SS have equal applicability. The assessee has not been able to furnish explanation worth relying to set aside the penalty. In these circumstances, we are constrained to uphold the order of CIT(Appeals) confirming levy of penalty u/s.271D. Penalty u/s.271E - Held that:- The Assessing Officer in the penalty order has re-produced the extract of questionnaire wherein Mr.A.Kannan has admitted that he runs money lending business, he lends money in cash and receives back in cash. He does not lend or receive back in cheque or draft. The assessee took loan in cash from a private money lender. Once in the trap of private money lender, the assessee was forced to follow his diktat. The assessee even if willing to re-pay the loan amount through banking channel was forced to pay in cash due to the terms imposed by the money lender. The assessee re-paid the loan amount in instalments of ₹ 2.00 Lakhs each in the period spread over in the AYs.2008-09 & 2009-10. Once in debt, assessee had no option but to accept the terms imposed by the money lender, Mr.A.Kannan for re-payment of loan amount. In these circumstances, we are of considered opinion that the assessee was constrained to re-pay loan amount as per the whims and fancies of Mr.A.Kannan by violating the provisions of section 269T. In the facts of the case, we are satisfied that the re-payment of loan amount in cash was out of compelling reasons. The penalty levied u/s.271E is deleted, the impugned orders are set aside and the appeals of the assessee are allowed.
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