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2019 (1) TMI 953 - RAJASTHAN HIGH COURTPenalty u/s 271D - receipt in cash being undisclosed income - Violation of provisions of Section 269SS - Held that:- A perusal of Section 269SS of the Act of 1961 reveals that it prohibits receipt of loan or deposit made by any person, otherwise than by way of an account payee cheque or account payee draft. Loan or advance is a sine qua non or foundational fact for the applicability of the provisions of Section 269SS of the Act of 1961. In the extant facts, the assessee has stated that the amount represented assessee’s undisclosed income and the same was debited in cash book as peak cash deposit. It was upon the Assessing Officer to have recorded the finding that the assessee had received a loan or deposit or advance from a third party. In absence of such fact, which is a precursor for establishing of breach of Section 269SS of the Act of 1961, the penalty cannot be levied. Commissioner (Appeals-2), Udaipur was perfectly justified in holding that there is no violation of the provisions of Section 269SS of the Act of 1961 and thus, levy of penalty under Section 271D of the Act of 1961 was void. - Decided in favour of assessee.
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