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2019 (6) TMI 444 - HC - Income TaxPenalty u/s 271D - default u/s 269SS - cash loans from friends - AO doubted various sundry creditors claimed by the assessee - HELD THAT:- The assessee finally made written submissions. In such written submissions also on facts the assessee stated that having exhausted the bank cash credit limits, the assessee was forced to accept cash loans from farmer friends to purchase raw material to execute time bound orders. This was the mere assertion made on the part of the assessee without any backing through material. The assesssee did not bring on record the financial position, the details of purchase orders required to be executed within time and most significantly did not co-relate the purchases made from such cash loans. This aspect has been highlighted by the Tribunal in the impugned judgment when the Tribunal recorded that the assessee has not given the dates on which he accepted the loans and the dates of purchase of raw material in the gray market and whether on such dates the funds were available with the assessee as per his account. Thus assessee relied all along on mere oral assertions of urgent requirement of funds without producing any material to establish such assertion. The Tribunal did not accept such bald assertion and has essentially came to the conclusion that the explanation offered by the assessee was not acceptable. We do not find any error in the view of the Tribunal. Tribunal might have cast certain aspersions on the transaction itself. However, some passing remarks in the order would not vitiate the very foundation of the order. The Tribunal found that the assessee had not giving reasonable explanation for failure to fulfill the requirement of Section 269SS of the Act due to which the penalty under section 271D of the Act had to follow. No question of law arises - Decided against assessee
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