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2017 (5) TMI 1669 - AT - Income TaxPenalty u/s. 271D r.w.s. 269SS - Cash received from mother - whether taking cash from mother/parent out of business expediency can attract penalty u/s. 271D r.w.s. 269SS - HELD THAT:- Assessee being a layman was not aware of the provisions of the Act as such, the default, if any, was attributable to ignorance of statutory provisions of the act. The assessee’s case finds support from the decision of the Delhi Tribunal in the case of Farrukhabad Investment (I) Ltd. V. JCIT (2002 (3) TMI 216 - ITAT DELHI ) where the professional auditors, experts in the field of taxation, did not point out any violation of S. 269SS it was held that it would be too much to expect from the assessee to know these provisions and as such the penalty imposed was deleted considering ignorance to be a “reasonable cause”. In the instant case also, the auditors did not point out any violation of S. 269 SS of the Act. In view of the above, we are of the considered opinion that this is not a fit case in which penalty u/s. 271D can be levied. The penalty so imposed by the Assessing Officer and sustained by the learned CIT(A) is hereby deleted. Therefore, the appeal of the assessee is allowed
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