TMI Blog2015 (10) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... was reasonable cause for the failure. But, what is reasonable cause is not clearly indicated either in section 269SS or in section 273B. Therefore, in an appeal under section 260A, we can only go by the question whether the exercise of discretion to find out the existence or nonexistence of a reasonable cause was properly explained by the authorities or not. We do not find any perversity in the approach of the Tribunal. As a matter of fact, instead of distinguishing the correctness of the discretion exercised by the assessing officer, the Tribunal has independently decided the question as to whether there was a reasonable cause or not. The Tribunal has independently applied its mind and come to the conclusion that there was no reasonabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 Cash 27.8.91 75,000 Cash 11.9.91 44,917 Compulsory Deposit 19.10.91 75,000 Cash 18.12.91 1,00,000 Cash 8.2.92 35,000 Cash 1,25,000 Cash 3. Therefore, on the ground that the assessee had violated the provisions of section 269SS of the Act, penalty proceedings under section 271D were initiated The appellant gave its submissions. Thereafter, the assessing officer passed an order dated 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e attracted. Hence, the second question of law is answered against the assessee in view of the factual finding that the assessee themselves have accounted the receipts as unsecured loan in their balance sheet. 7. On the question of penalty, Mr.S.Sridhar, learned counsel for the assessee contended vehemently that under section 273B, the authorities are empowered not to levy penalty, if the assessee is able to prove that there was a reasonable cause for the failure to comply with the provisions of section 269SS. In support of his contention that the moment the assessee proves the existence of a reasonable cause, the authorities are obliged to exercise a discretion not to levy penalty under section 271D, the learned counsel for the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er reads as follows:- The next point raised by both the sides is that as to whether there exists a reasonable cause or not? And as to whether the onus is on the Department or on the assessee to prove that there exists a reasonable cause. Even though, the assessee was not in need of money, all these loan transactions were made for deposit of money with the assessee and it has accepted the money in cash from the depositor in excess of ₹ 20,000/-. For this, the simple reason stated by the assessee is that the depositor was a partner earlier and she wanted to deposit the money with the assessee-firm for safe custody as the firm consists of her sons. This is not a reasonable cause for violation of the provisions of sec.269SS of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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