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TMI Blog2015 (4) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... h May, 1998, the assessee borrowed a sum of Rs. 1,90,000/- in cash from his brother. It is not in dispute that the sum of Rs. 1,90,000/- was withdrawn by the brother of the assessee from his own bank account. After the withdrawal was made, the sum was made over to the assessee and on the same day the assessee deposited the amount in his bank account. This is how cash loan of a sum of Rs. 1,90,000/- was received by the assessee which is in contravention of section 269SS of the Income Tax Act. The assessee was penalised by an identical sum of Rs. 1,90,000/- under section 271D. In an appeal preferred by the assessee, the C.I.T (Appeals) was of the opinion that there was a reasonable cause which led the assessee to took the loan otherwise than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loan and when all these aspects have been totally ignored by the Tribunal while deciding the present case? ii) Whether on the facts and in the circumstances of the case, the order of the Tribunal confirming the penalty amounting to Rs. 1,90,000/- under Section 271D of the I.T.Act 1961 was perverse and not sustainable in law? " Mr.Biswas, learned advocate appearing for the appellant submitted that the well reasoned order passed by the C.I.T.(Appeals) was interfered with by the learned Tribunal for no justifiable cause. Mrs. Gutgutia, learned advocate appearing for the revenue submitted that absence of any reasonable cause to borrow the money in cash in contravention of section 269SS is substantiated by the fact that the assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wn by the Commissioner of Income Tax (Appeals) by holding as follows: "Once having taken the loan and having deposited in his account, no purpose would have been served to take it out, and controvert into a financial instrument after ascertaining the amount of installment payment to avoid the attracting provisions of Section 269SS". The fact that money was withdrawn on 6th May, 1998 from the bank account of the lender and the fact that the money was deposited in the bank account of the borrower on 6th May, 1998 itself is a pointer to show that the assessee was under a belief that there was a great urgency. True that he could have achieved the object by obtaining an account payee cheque from the lender but the same would have taken time fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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