Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (7) TMI 331 - AT - Income TaxPenalty levied u/s. 271D and 271E - assessee accepted the cash deposits and repaid the same in cash in violation of the provisions of section 269SS and 269T - CIT(A) deleted the penalty levy - Held that:- It is an undisputed fact that the assessee accepted cash loan of ₹ 7,73,000/- and has repaid the same in cash to the lenders. Thus, the assessee has violated the provisions of section 269SS and 269T of the Act. For the violations of aforesaid sections the assessee had made itself liable for penalty u/s. 271D and 271E, respectively. However, the provisions of section 273B provides an exception, that no penalty shall be imposed u/s. 271D and 271E if the assessee proves that there was reasonable cause for not complying with provisions of the Act. The assessee has given detailed reasons for accepting the loan amount in cash from its Members/Office bearer and repayment of the same in cash. Further, in support of its submissions, the assessee has placed on record letter dated 28-04-2006 from Geeta Sanstha making an offer to settle the loan account by paying an amount of ₹ 6,11,000/- on 12-06-2012 before the Co-operative Court. The assessee has also placed on record the translated copies of the Resolution dated 31-03-2006 and 15-08-2005 to substantiate that the assessee had to repay loan to Geeta Sanstha. The assessee has filed affidavits of the lenders who are agriculturist to substantiate that they have advanced cash loan for the purpose of repayment of arrears of loan to Geeta Sanstha on 12-06-2012. The assessee has also placed on record affidavit of Shri Ramchandra Shivaji Jadhav, Manager, Geeta Sanstha giving the detailed sequence of events that transpired on 12-06-2006 in the Co-operative Court. The Revenue has not disputed the outstanding amount payable by assessee to Geeta Sanstha which is duly reflected in audited balance sheet of the assessee as on 31-03-2007 under the head Loans. The Assessing Officer had summoned the lenders of the cash amount and recorded their statements on 14-10-2009. All the three lenders supported the cause of the assessee. The genuineness of the transactions have been verified. The persons who have advanced cash loans have been identified. They had filed affidavits and their statements were recorded by the Assessing Officer. The Revenue has not been able to controvert the contents of the statements or the affidavits. The circumstances under which cash loan was accepted and repaid have been explained. We are of the considered view that the cash transactions were genuine and bonafide. See CIT Vs. Laxmi Trust Co. (2006 (12) TMI 124 - MADRAS HIGH COURT) and Sharda Educational Trust Vs. ACIT (2005 (1) TMI 309 - ITAT AGRA) . Thus no penalty u/s. 271D and 271E of the Act is leviable. - Decided in favour of assessee.
|