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2016 (8) TMI 810 - AT - Income TaxPenalty levied U/s 271D - Held that:- The revenue has accepted the explanation of cash deposit in the bank account , in the quantum proceedings , therefore no penalty proceeding were initiated in the quantum proceedings. Since the revenue has accepted the explanation of cash in the assessment proceedings, therefore, the same set of facts and documents cannot be made basis for imposition of penalty. The assessee, has submitted the reasons for accepting the cash in the quantum proceedings and the said reasons were accepted by the A.O and the same reasoning should have been accepted in penalty proceeding as well. In our view, now in the quantum proceedings U/s 271D of the Act, the officer, is not permitted to reopen and reexamine the reasoning given by the assessee. It is correct that the assessment proceedings and proceedings for violation of Section 269SS of the Act are independent proceedings but in the cases like in the hand, the revenue is not permitted to take contrary stand. The judgment in the case of Dimple Yadav [2015 (8) TMI 992 - ALLAHABAD HIGH COURT] was sought to be distinguished by the ld DR on the premise that the money after accepting from the creditor was not routed through the banking channel for the payment to the seller. In our view, this argument is not available to the revenue as the revenue has neither challenged the registration of the sale deed in favour of the assessee nor has challenged the cash consideration paid by the assessee to the seller at the time of registration before the Sub-Registrar of sale deed. In our view the case of the Dimple Yadav is squarely applicable to the facts and circumstances of the case. In the light of the above, we are of the view, the assessee has shown the reasonable cause within the meaning of Section 273B of the Act, therefore, the penalty order of the lower authorities is quashed and the appeal of the assessee is allowed.
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