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2015 (1) TMI 1115 - GUJARAT HIGH COURTPenalty levied under Section 271D - assessee firm accepted loans/deposits of ₹ 20,000/- each from 13 parties totalling to ₹ 2,60,000/- in cash, in contravention of the provisions of Section 269SS - Held that:- Looking to the facts and circumstances we are of the opinion that the loan/deposits taken to meet urgent and immediate requirements of business and the impression gathered as taxpayers from the aforesaid circular and the advertisement did constitute a reasonable cause for accepting the said loans/deposits of ₹ 20,000 from each party in cash within the meaning of 273B of the Act. It is found therein that loans/deposits raised were to meet exigencies of business. Thus the penalty levied was cancelled. Thus as relying on case of Madhukar B. Pawar (2008 (6) TMI 321 - BOMBAY HIGH COURT ), we are of the considered opinion that the Tribunal has rightly cancelled the penalty imposed on the assessee. - Decided in favour of assessee Whether the ignorance of law was a proper excuse - Held that:- This issue is answered in negative i.e. in favour of the revenue and against the department. Therefore, we hold that ignorance of law was not a proper excuse. - Decided in favour of revenue.
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