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2018 (6) TMI 1561 - AT - Income TaxPenalty u/s 271D - assessee has received cash loan from the company namely M/s Ceigall India Ltd. Ludhiana in which he is a Director - amounts in cash have been received were varying from ₹ 15,000/- to ₹ 8,00,000/- - whether penalty can be levied in the absence of any other material to prove or indicate introduction of unaccounted money or any doubt casted by the department regarding the genuineness of the source or whether the assessee has brought reasonable cause to enter into such transactions. Held that:- Transactions have been undertaken between two bank accounts by withdrawing cash from one account and depositing the cash into the other account. The source of repayment or payment of loan was never in question. There was no leakage of Revenue or detection of circulation of unaccounted money by way of cash loans which was the fundamental purpose to curb the circulation of black money. The transactions have been taken place between two current accounts and also between the Director of the Company and the Company itself in the form of maintenance of a current account for contingencies of business purpose and also for contingencies of the Director for salary and payment of credit card dues. While such transactions may attract other provisions of the Income Tax Act,1961, but it is not a fit case for the levy of penalty under section 271E/271D. Absence of any evidence of introduction of unaccounted money and following the judgments of CIT Vs. Saini Medical Stores [2005 (2) TMI 72 - PUNJAB AND HARYANA HIGH COURT] and CIT Vs. Sunil Kumar Goyal [2009 (3) TMI 131 - PUNJAB AND HARYANA HIGH COURT] and keeping in view the facts and circumstances specific to the instant case, no penalty can be leviable under section 271E and Section 271D - Decided in favour of assessee.
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