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TMI Blog2014 (4) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act levied by the Assessing Officer on account of repayment of loan to Mr. Rajmal D. Solanki, who is father of the assessee. 2. Facts in brief:- The assessee is an individual who is engaged in the business of buying and selling of silver articles from his proprietary concern M/s. Silver Palace, and also is engaged in the construction of business from his another proprietary concerned M/s. Nirmala Construction. In this assessment year, the assessment under section 143(3) was completed vide order dated 29th October 2012, wherein the return of income of the assessee was accepted. Later on, the Assessing Officer issued show cause notice for levy of penalty under section 271E, as the assessee, during the relevant financial year, had re-paid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the treatment of his father. The assessee's detail explanation has been incorporated by the learned Commissioner (Appeals) from Page-3 to 7 of the appellate order. However, the learned Commissioner (Appeals) held that in the absence of any documentary evidence, reasonable cause for re-payment of loan to his father due to his illness cannot be accepted. He also rejected the letter from assessee's father which was submitted before him and held that such a letter is an after thought and cannot be accepted. Accordingly, he confirmed the penalty. 4. Before us, the learned Counsel for the assessee submitted that the genuineness of the transaction of receiving the loan and re-payment of loan has not been doubted. He also filed a copy of bank st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... father in the earlier financial years through cheques for sums aggregating Rs. 1,50,000. The said loan has been re-paid before 31st March 2008, albiet in cash. The re-payment of a loan in cash clearly violates the provisions of section 269T and, accordingly, penal provisions under section 271E, are triggered. The rigors of penalty under section 271E can only be waived off, if the assessee proved that there was a "reasonable cause" for failure to comply with the penalty provisions within the meaning of section 273B. The "reasonable cause" has to be seen from the context of the situation wherein a person has a reasonable and bonafide belief of taking an action beyond his control i.e., the cause which prevents reasonable person in ordinary pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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