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2016 (2) TMI 1244 - ITAT CHANDIGARHPenalty u/s 271D - whether there is a reasonable cause for the alleged violation of section 269SS ? - HELD THAT:- The object of introducing section 269SS is to ensure that a tax payer is not allowed to give false explanation for his unaccounted money, or if he makes any false entry, he shall have no escape by giving false explanation to the same. In the instant case, it is clear that the cash transactions of the assessee were with his close friend Shri Gajender Singh who is an agriculturist. The Hon'ble Supreme Court in the case of Asst. Director of Inspection (Investigation) Vs. Kum. A.B. Shanthi [2002 (5) TMI 4 - SUPREME COURT] has clearly laid down that if there is a genuine and bonafide transactions and the tax payer could not get a loan or deposit by account payee cheque or demand draft for some bonafide reason, the authority vested with the power to impose penalty has a discretionary power. No penalty u/s 271D of the Act can be validly levied in this case. Accordingly, cancel the impugned penalty. - Decided in favour of assessee.
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