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2016 (3) TMI 1106 - AT - Income TaxPenalty under section 271D - Held that:- Imposition of penalty under section 271D is neither automatic nor mandatory as section 273B provides that no penalty is imposable if the assessee proves that there was reasonable cause for failure in complying to the provisions of the Act. A conjoint reading of sections 269SS, 271D and 273B of the Act would demonstrate that every violation under section 269SS will not culminate in imposition of penalty under section 271D. If the assessee proves that there was reasonable cause for non–compliance to the relevant provision, then penalty cannot be imposed. In other words, in a given case, if assessee shows reasonable cause for the failure, Assessing Officer is empowered under the Act to refrain from imposing penalty. In the present case after considering the explanation of the assessee in the context of facts and material on record, we are of the firm view that the assessee has proved that there was reasonable cause for accepting the cash loans. Further, the authority concerned, while imposing the penalty has not established that the transaction relating to acceptance of cash loan is either non–genuine or not bonafide. On careful analysis of the decision cited by the learned Authorised Representative, it is found that ratio laid down therein squarely applies to the facts of the present case. In the aforesaid view of the matter, we do not see any reason to upset the order of the learned Commissioner (Appeals). Accordingly, upholding the same, we dismiss the ground raised by the Department. - Decided in favour of assessee.
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