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2018 (7) TMI 1314 - AT - Income TaxImposition of penalty u/s. 271D - getting loans in violation of the provisions of sec. 269SS - loan exceeding permissible limit - Held that:- As per the explanations of the assessee, the goods were being imported from Hongkong. The assessee received first loan of ₹ 1.00 lakh on 01-10- 2007. It was repaid on 03-10-2007, since the consignment was stated to be delayed. The second loan of ₹ 1.00 lakh was received on 05.12.2007, since the foreign supplier was expected to ship the goods on 11.12.2007. The above said explanation would show that the goods were not shipped either on 01-10-2007 or on 05-10-2007, i.e., on the dates on which the impugned loans were taken. The question of payment of customs duty etc., would arise only upon shipment or receipt of goods. In fact, the assessee admits that the goods were expected to be shipped on the second occasion only on 11.10.2007, while the cash loan was taken on 05-10-2007. If the director had given cheque on 05-10-2007, the funds would have been credited to the account of the assessee well before 11.10.2007. These facts would show that there was no urgent business necessity for the assessee on both the occasions to accept the loan in cash. Further, the assessee has also failed to demonstrate that on both the dates the assessee was not having sufficient funds in its possession. We are of the view that the assessee has failed to show that there was a reasonable cause for getting loans in violation of the provisions of sec. 269SS of the Act. Penalty confirmed - Decided against assessee
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