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2014 (7) TMI 1329 - AT - Income TaxPenalty u/s 271D - loan in cash and violation is intentional and purposeful - contravention of the provisions of section 269SS - HELD THAT:- The genuineness of the loan creditors and the loan transactions were never doubted by the Department. Moreover, the Department has not taxed these amounts in the hand of the lender i.e. Shri A. Kannan. He also observed that the assessee satisfies the existence of the reasonable cause for contravention of the provisions of section 269SS. When the assessee had shown reasonable cause and the reasonable cause is essentially a finding of fact, no question of law much less substantial question of law would arise. The alleged contravention did not result in any unaccounted transaction and that said transactions were made only to meet the sudden demand in the business activities. As decided in own case [2013 (10) TMI 1327 - ITAT CHENNAI] the factum of loan and repayments are beyond doubt. The genuineness of the transactions is also not in doubt. It is also established by the assessees that there existed similar emergency for repaying the loan in cash, as the emergency which prompted them to take loans in cash. Therefore, this is a case where there is a reasonable cause for the assessees to repay the loans in cash. In such circumstances, it is to be seen that the violation of Section 269T is technical. - Decided in favour of assessee.
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