Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (11) TMI 227 - HC - Income TaxLevy of penalty u/s 271D and 271E – Applicability of section 269SS r.w section 271D – Quantum appeal already decided in favour of assessee - Held that:- The Tribunal rightly allowed the appeals filed by the assessee with regard to the penalty levied u/s 271D and 271E of the Income Tax Act - the loans taken in the cases were genuine and the exigency that arose out of the business was a cause for taking such loan - Since in the quantum appeal, the Tribunal found that the assessee was bona fide in such transaction, the Tribunal in exercise of power u/s 273B, considering the reasonable cause submitted by the assessee, thought it fit to set aside the entire penalty by accepting the explanation given by the assessee. - taking of loan is found to be genuine and the same is for business exigency, it is not a case of undisclosed income - If the assessee had not given a reasonable cause, then certainly the initiation of proceedings for violation of 269SS and 269T would be justified. The reasonable cause for not levying penalty exists and the Tribunal was justified in allowing the assesse's appeal - the Tribunal has clearly held in the quantum appeal there was a bona fide on the part of the assessee and as a consequence finding reasonable cause, thought it fit to delete the entire penalty - The assessee has shown the receipt of cash and repayment of the same due to business exigency and that would amount to reasonable cause - The genuineness of the transaction to meet the immediate necessity was accepted by the Tribunal in the quantum appeal and that would amount to reasonable cause in terms of Section 273B of the Income Tax Act – thus, no substantial question of law arises for consideration – Decided against Revenue.
|