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2012 (12) TMI 292 - AT - Income TaxPenalty u/s 271D - Violation of Provisions of sec 269SS - Held that:- CIT(A) is not justified in accepting the oral explanation offered by the assessee that the depositors do not have PANs and the assessee only acted as a custodian of the amount and did not gain anything and the depositors were agriculturists - there existed no reasonable cause for accepting the loans/ deposits or aggregate of such loans or deposits of Rs. 20,000 or more from various persons otherwise than by crossed account payee cheques or DDs. As such the assessee committed violation of provisions of section 269SS of the Act. Therefore, the penalty u/s. 271D is attracted and rightly imposed by the Assessing Officer and the learned CIT(A) was not factually or legally correct in deleting the penalty levied by the Assessing Officer. Accordingly, we cannot sustain the order of the CIT(A) which is based on irrelevant considerations - order of CIT(A) is reversed and restore the order of the Assessing Officer - In the result, Revenue appeal is allowed. Decision of Commissioner of Income-Tax, Central, Calcutta Versus National Taj Traders [1979 (11) TMI 2 - SUPREME COURT] followed.
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