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2018 (3) TMI 1469 - HC - Income TaxPenalty under section 271D - assessee has violated section 269 SS as accepted deposits over ₹ 20,000/in cash - Held that:- In case of Shivaji Ramchandra Pawar (2018 (2) TMI 1467 - BOMBAY HIGH COURT), this court had observed that mere fact that a party accepts loans in cash which are otherwise explainable would not absolve a party from penalty under section 271 D of the Act in absence of a reasonable cause. In the present matter it has been observed by the Commissioner (Appeals) and the Tribunal concurrently that the auditor of the respondent advised that Section 269SS of the Act are not applicable to the assessee on the ground that assessee's business is akin to the bank. CIT(Appeals) and Tribunal observed that it is based on the advise of the Auditor. The assessee believed the advice and it can not be said that the assessee's bona fide belief was genuine and honest.Section 271D is a penalty proceedings. The Tribunal and the Commissioner (Appeals) concurrently appreciated the explanation given and found the explanation to be within the purview of reasonable cause. No substantial question of law arises.
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