Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 1616 - AT - Income TaxPenalty u/s 271D - Default in accepting the cash loan in violation of section 269SS - urgency of matter - Held that:- It is explained by the assessee that it was in the process of undertaking a real estate project for which it was to execute a sale deed which required payment of stamp duty of an amount of ₹ 3,00,000 or thereabout. Since, the stamp duty was to be paid urgently, the assessee had no other option but to avail the cash loan from the directors. On a perusal of the bank statement copy filed it is noticed that the cash loan of ₹ 3,50,000 was deposited in bank account on 5th October 2010 and on the very same day, the said amount was transferred from the bank account to the Sub–registrar and some other Government Agency towards payment of stamp duty. This fact is also corroborated from the endorsement made in the sale deed executed by the assessee. Thus, prima–facie, it appears that for payment of stamp duty the assessee was compelled to avail the cash loan from the directors looking at the urgency of the matter. there is a reasonable cause for the default or failure on the part of the assessee to comply to the provisions of section 269SS of the Act. That being the case, imposition of penalty under section 271D not justified - Decided in favour of assessee
|