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2022 (6) TMI 593 - AT - Income TaxPenalty u/s. 271D - Loan accepted in cash in contravention of section 269SS - assessee had taken/accepted loans/deposits more than rupees twenty thousand in cash or otherwise than by account payee cheque/account payee draft from few person/party during the F.Y. 2014-15 relevant to A.Y. 2015-16 in contravention of the provisions of section 269SS - HELD THAT:- Here it is not disputed by both the parties that the assessee is having sufficient agricultural land on its disposal as joint owner. It is also evident that on the seized material related to the land ownership document on the back side of that paper the assessee has written the date, amount and the name of the person from the money has been received. On the top of the seized material below the details of money received it is also mentioned that [“Ramgadh Jamin ke pete” mean on account of Ramgadh land]. There is no contrary finding that the version stated in the above seized documents are not correct and even the assessee has accepted the facts mentioned in that seized documents. The details are perfectly mentioned in that seized documents and the money so received is against the sale of agricultural land for which sale document or agreement to sale is not made on account prevailing dispute between the family members. Accordingly, the amount so received is the advance received against the sale of agricultural land owned by the assessee. During the course of the assessment proceeding the assessee contended that as regards the details of all six persons from whom such advance against sale of agricultural land was received, it is submitted that such advances were received through broker(s) in open market, which is a normal and prevailing practice. All the transactions have been entered through broker. The names of all theses persons have been given by the broker(s). At present, the brokers are not in touch with the assessee. This written submission of the assessee is in accordance with the seized material found during the course of search and assessee has accepted the facts stated in that paper and once the assessing officer has considered the holding of the land, details of the amount received as advance for the sale of agricultural land all the details and facts arising out of the seized documents support the contention raised by assessee and on the contrary department has not challenged this basic arguments of the assessee that he has received the money as on account of sale of agricultural land. Till the date of transaction of advance received by the assessee the money so received is also not coming under the purview of specified sum and the same has been introduced in the Act w.e.f. 01-06-2015. Thus, the said amendment does not affect the transaction of the year under consideration. It is submitted by the AR of the assessee that once the cash receipt on account of sale of agricultural land was not prohibited under the law the advance so received by the assessee can not be considered as cash loan once the nature of credit is evidently clear that the money so received is for sale of agricultural land on face of the document seized. Thus, we have gone through the submission of the assessee and material available on the records and on abutted reading of page 71A along with the page 71, it is clear beyond doubt that the transactions entered on the page are pertaining to the agricultural land of the assessee situated and the department has not raised any doubt about the adequacy of the land and the amount related to the said land received by the assessee. Thus, this indirect admission of the department strength the argument of the assessee. Addl. CIT while passing the order of levying penalty u/s. 271D has relied upon the finding of the order of the assessing officer in the quantum proceeding for A. Y. 2015-16 where in six issues has been pointed out the assessing officer in relation to the page under consideration, while levying the penalty order, except that point there is no separate finding or satisfaction of the Ld. Addl. CIT in this matter. The Ld. AR of the assessee has already filed the explanation stating that why the said finding of the AO is not correct and is also discussed in above paras. Thus, the order of levying penalty has no separate finding or observation as to why the penalty should sustain. Thus, the said order is considered in the light of the submission made by the Ld. AR of the assessee. We are of the view that while levying the penalty the Ld. Addl. CIT has not dealt so as to why and how the penalty is leviable considering the present set of facts available on record. Looking to the facts, evidences and written arguments placed before us we concur the finding given by the Ld. CIT(A) and thus, based on this finding the appeal of the department is dismissed as the impugned transaction listed on the back side of page 71 is the amount received on the proposed sale transaction of the agricultural land and thus the considering that aspect the assessee has not violated the provisions of section 269SS of the act and in turn he is not liable for the penalty u/s. 271D - Decided against revenue.
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