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2019 (8) TMI 240 - AT - Income TaxPenalty u/s 271-D - default u/s 269SS - HELD THAT:- Assessee is an agriculturist selling his crop through M/s Kundan Lal & Sons, Panchkula and he was receiving the amount against the crops from the said Commission Agent, therefore it cannot be said that the assessee received or paid amounts in cash as a deposit or loan rather the amounts received in cash were against the agriculture crops, therefore the provisions of Section 269SS and 269T of the Act were not applicable to the facts of the assessee’s case. See HISSARIA BROTHERS. [2006 (7) TMI 163 - RAJASTHAN HIGH COURT]. In the present case also the amount in question was received by the assessee against the sale of the crops so it was neither the loan nor the deposit, therefore the provisions of Section 269SS of the Act were not applicable and as such penalty levied by the A.O. and sustained by the Ld. CIT(A) under section 271D of the Act was not justified, accordingly the same is deleted. Penalty u/s 271E - contravention of the provisions of Section 269T - making the payments of the amount received by the assessee against the crop from the Commission Agent - HELD THAT:- As already mentioned in the former part of this order while deciding the issue relating to the levy of penalty under section 271D of the Act, that the transactions between the assessee and the Commission Agent were relating to the sale of agriculture crops, therefore, there was no receipt or repayment of loan or deposit, accordingly penalty levied by the A.O. and sustained by the CIT(A) under section 271E of the Act is also deleted. - Decided in favour of assessee.
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