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2015 (4) TMI 920 - AT - Income TaxPenalty u/s.271D - acceptance of loan in cash - violation of the provisions of section 269SS - Held that:- Respectfully following the decision of the Hon’ble jurisdictional High Court cited in Madhukar B. Pawar [2008 (6) TMI 321 - BOMBAY HIGH COURT ] we hold that penalty u/s.271D is not leviable on account of cash loan of ₹ 20,000/- received from Shri Ravindra by the assessee since the loan is not in excess of ₹ 20,000/-. The AO is accordingly directed to delete the penalty on this amount. We hold and direct accordingly. So far as the amount of ₹ 80,000/- received in cash from Shri Balakrishna Nagmoti is concerned, it is the submission of the Ld. Counsel for the assessee that the seized diary does not contain name of the above mentioned person. We, therefore, direct the Assessing Officer to verify the notings in the seized diary found during the course of search. In case the name of the above mentioned person is not appearing in the notings in the seized diary, then the Assessing Officer has to delete the penalty u/s.271D on account of cash loan of ₹ 80,000/- received from the above mentioned person. We hold and direct accordingly. So far as the cash loan of ₹ 1 lakh received from Shri Patil Saheb of Jalgaon is concerned, the Ld. Counsel for the assessee fairly conceded that there is violation of provisions of section 269SS. We, therefore, uphold the levy of penalty u/s.271D on account of acceptance of cash loan of ₹ 1 lakh from Shri Patil Saheb of Jalgaon. - Decided partly in favour of assessee. Account payee cheques have been added by the AO u/s.68 - Held that:- So far as the amount of ₹ 20,000/- received in cash on 12-03-2004 from Smt. Kalpana R. Patil is concerned the same has to be deleted in view of the decision Madhukar D. Pawar (Supra). Penalty u/s.271D on this amount is directed to be deleted.- Decided partly in favour of assessee. So far as the amount of ₹ 50,000/- received from Smt.Latadevi Malpani, ₹ 50,000/- from Smt.Neetadevi Malpani, ₹ 50,000/- from Smt.Rupali Malpani and ₹ 1,20,000/- from Shri Sonali Malpani are concerned in view of the submission of the Ld. Counsel for the assessee the amounts are taken from different persons not exceeding ₹ 20,000/- in each case, the same are restored to the file of the AO with a direction to verify from the seized diary and take appropriate decision as per law and facts after giving due opportunity of being heard to the assessee. So far as the amount of ₹ 50,000/- received from Shri Ramesh D. Pawar and ₹ 1,30,000/- from Shri Shivaji Kothawade are concerned the same is restored to the file of the AO with a direction to verify the submission of the Ld. Counsel for the assessee that the above persons are agriculturists and have no banking facility at their respective villages. If the same is found to be correct, then in our opinion there exists reasonable cause for accepting such cash loan from the agriculturists having no banking facility and the Assessing Officer is directed to cancel the penalty u/s.271D. So far as the amount of ₹ 1,40,000/- received from Shri S.L. Patil is concerned it is the submission of the Ld. Counsel for the assessee that he has received an amount of ₹ 80,000/- by account payee cheque from Shri S.L. Patil and the loan of ₹ 60,000/- has been added by the AO u/s.68 of the I.T. Act. Similarly, it is the submission of the Ld. Counsel for the assessee that the amount of ₹ 1,60,000/- received from Mr. Jagannath Pawar is not correct and it is only ₹ 16,000/- as per the seized diary and the assessee has taken further loan of ₹ 1000/- which was also repaid. Thus restore this issue to the file of the AO with a direction to verify from the seized diary regarding the veracity of the above submission of the Ld. Counsel for the assessee and decide the issue afresh in accordance with law after giving due opportunity of being heard to the assessee. So far as the amount of ₹ 50,000/- received from Shri Jambo Seth and ₹ 6 lakhs from Shri Jyoti Mahajan are concerned in absence of any satisfactory explanation given by the assessee regarding non levy of penalty u/s.271D we uphold the order of the CIT(A) confirming the levy of penalty on the above amounts. Since according to the Ld. Counsel for the assessee, no penalty has been levied in the case of loan from Smt. Sujata Bhamre, we are not dealing with this issue.
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