TMI Blog2015 (4) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... ensive of getting his, booking cancelled are also of non-availability of truck due to heavy demand in the market. The appellant was not sure whether the payments will be lump sum or through installments. He was driven by a sense of urgency for which he took loan from his brother in cash and deposited the same in his bank account. It was his judgement regarding the urgency in the prevailing circumstances and according to him the urgency existed for making payment.The observation of CIT (A) is a pointer to show that the case is clearly covered by Section 273B of the Income Tax Act. It is elementary that an appellate authority interferes with an order not because the impugned order is not right but because the impugned order is shown to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pinion that there was a reasonable cause which led the assessee to took the loan otherwise than by an account payee cheque and, therefore, the penalty should not have been levied. The C.I.T (Appeals) has obviously taken assistance of section 273B, which provides that no penalty shall be impossible for any failure referred to in section 269SS, if the assessee proves that there was a reasonable cause for the said failure. Aggrieved by the appellate order, the revenue preferred an appeal which was allowed by the Tribunal, which is under challenge. At the time of admission of the appeal the following questions were formulated;- i) Whether the Tribunal without considering the facts of the present case and the totality of the circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrow the money in cash in contravention of section 269SS is substantiated by the fact that the assessing officer in his order dated 4th February, 2003 has disclosed the following undisputed facts. 5.1 Furthermore, the facts on record reveal that while the assessee received the cash amount of ₹ 1,90,000/- on May 06, 1998 which he deposited in his bank account on the same day, the first payment of ₹ 50,000/- was made nine days later on 14.05.1998. The balance amount of ₹ 1,40,000/-, continued to be in the possession of the assessee till the next two payments were made more than a month later, i.e. on June 20 and 24, 1998, culminating with the final payment of ₹ 59,592/- on July 04, 1998. These facts show that ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy. True that he could have achieved the object by obtaining an account payee cheque from the lender but the same would have taken time for the purpose of clearance. The case of the assessee as regards urgency was accepted by the appellate authority by observing as follows:- Having booked the vehicle on 29.04.1998 and demand by the financier to make immediate payment, the appellant was apprehensive of getting his, booking cancelled are also of non-availability of truck due to heavy demand in the market. The appellant was not sure whether the payments will be lump sum or through installments. He was driven by a sense of urgency for which he took loan from his brother in cash and deposited the same in his bank account. It was his judgeme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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