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2017 (11) TMI 1823 - AT - Income TaxPenalty u/s 271D - violation of Section 269SS - “reasonable cause” for violation to comply with the provisions of Law - HELD THAT:- In this case, the A.O. merely initiated penalty proceedings separately for violation of Section 269SS of the I.T. Act. He did not record any satisfaction under section 271D of the I.T. Act before initiating the penalty proceedings under section 271D. The explanation of assessee on merit clearly suggest that assessee had a “reasonable cause” for violation to comply with the provisions of Law because no cash given directly to assessee but deposited at Shilong Branch over which assessee did not have any control. The assessee immediately acted on the matter and refunded the amount in question. The finding of fact recorded by CIT(A) have not been disputed through any evidence or material on record. Therefore, considering the issue in the light of “reasonable cause” under section 273B of I.T. Act, for failure to comply with the provisions of Law, no penalty is leviable in the matter. In the light of judgment of the Hon’ble Supreme Court in the case of CIT vs. Jai Laxmi Rice Mills [2015 (11) TMI 1453 - SUPREME COURT] set aside the orders of the authorities below and cancel the entire penalty. - Decided in favour of assessee
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