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2024 (4) TMI 140 - ITAT DELHIPenalty levied u/s 271DA - cash receipts by assessee of Rs. 2,00,000/- or more from a single persons by splitting the invoices against sale of goods at its stores - violation of provisions of section 269ST - whether good and sufficient cause proved? - proceedings of search and seizure operation that was conducted on director of assessee company - CIT(A) confirmed addition and held that the assessee has issued two bills to the customer bifurcating it below Rs. 2,00,000/- as obvious i.e. circumventing the provisions of section 269ST - CIT(A) held that no person issues two bills to the same customer for two different items HELD THAT:- The Hon’ble Apex Court in the case of Hindustan Steel Ltd Vs. State of Orissa [1969 (8) TMI 31 - SUPREME COURT] held that held that penalty may not be imposed when there is technical or venial breach of the provisions of the Act. 'Good cause’ as defined Lexicon - “Reason which is found to be adequate or proper and justified by a court or a competent authority dealing with the matter.” ‘Sufficient cause’ - “The expression ‘sufficient cause’ implies no negligence nor inaction nor want of bonafides on the part of the party”. See MYSORE FERTILISER COMPANY [1982 (11) TMI 15 - MADRAS HIGH COURT],CHEMBARA PEAK ESTATES LIMITED [1989 (8) TMI 35 - KERALA HIGH COURT],BHIKAJI RAMCHANDRA [1982 (2) TMI 1 - BOMBAY HIGH COURT] and JAIPUR ELECTRO PRIVATE LIMITED [1979 (10) TMI 6 - RAJASTHAN HIGH COURT] The default, if any, at most be said to be a technical default. It has been held by the Hon’ble Apex Court in the case of Hindustan Steels vs. State of Orissa [1969 (8) TMI 31 - SUPREME COURT] that penalty cannot be levied merely because the authorities are empowered to levy and when there is technical or venial breach of the provisions of the Act, the authorities competent to impose penalty shall be justified in refusing to impose the penalty - Appeal of the assessee is allowed.
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