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2022 (2) TMI 1205 - AT - Income TaxPenalty u/s 271D - transaction of acceptance of cash trading advances violative of provisions of section 269SS - HELD THAT:- In the instant case, it is undisputed fact the assessee during the course of his regular business found accepted deposit in cash from five persons and transferred for the urgency of his principal, however the assessee dejectedly failed to establish vis-à-vis substantiate his proposition such receipts were trading advances in the light of evidential material such as sales invoices, delivery challans and vouchers etc. - the appellant also remained unsuccessful in proving any of the intractable circumstances which leads to acceptance of deposit in cash or even demonstrate his case falling within the realm of exceptions laid in the provision or evince of reasonable cause of led such violation, consequently we obstinate with the findings of tax authorities below. Once the violation of provisions of section 269SS is manifested, it inevitably triggers penalty provision as laid in section 271D unless the sheltered within the umbrella of 273B. Hon’ble High Court of Judicature at Bombay in a similar circumstance in Manish Nitin Wadikar [2019 (6) TMI 444 - BOMBAY HIGH COURT] held that, where the assessee failed on a given sufficient opportunities to establish any reasonable cause of violation of provisions of section 269SS, per contra makes mere assertion against the proposition of tax authorities without any supporting material in substantiating such assertion, is essentially sufficient to draw conclusion against the assertion made by the assessee, consequently the penal provision shall follow. Tribunal had occasioned to considered the correctness of levy of penalty u/s 271D for the violation of provisions of section 269SS triggered out of bonafide transaction but in the absence of any reasonable cause as contemplated in section 273B in the case of Deepak Sales & Properties Pvt Ltd [2018 (7) TMI 1314 - ITAT MUMBAI] Held that the penalty u/s 271D is invincible in the absence of reasonable cause. We find no illegality in the penalty order; consequently, we upholding the order of Ld JCIT with no infirmity. - Decided against assessee.
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