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2012 (11) TMI 401 - AT - Income TaxPenalty u/s 271(1)(c) - unaccounted cash credits - Held that:- The assessee had placed on record the confirmation of HUF, details of bank account along with details of land holding as per 7/12 and 8A details. It is also noted by CIT(A) that the assessee has also placed on record the confirmation, details of bank account along with details of land holding of 12 HUFs who had advanced money to the assessee HUF. On the basis of these facts, this finding is given by CIT(A) that the assessee has not only proved the immediate source of the credit but also the source of the source - addition & penalty deleted - in favour of assessee. Penalty u/s. 271E - loan repayment in cash - Held that:- Persuing the two lists of names, it is clear that the names are not the same regarding receipt of loan by cheques and repayment of loans in cash. Thus, argument of D.R. is not valid that when the persons are having bank account at the time of giving the money to the assessee, how they were not having bank account when repayment was made to them. A clear finding is given by CIT(A) that these persons were residing in small villages and the nearest bank was situated about 15 km away from their villages. He has also given a finding that out of 11 persons, 4 persons were not having by bank account and one person had expired and, therefore, the assessee was compelled to make repayment in cash to his legal heirs on their request. Regarding the remaining 6 persons, he has given finding that they were residing in the villages where no bank and banking facilities were available to them and the assessee has repaid in cash to them - addition & penalty deleted - in favour of assessee.
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