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2016 (3) TMI 541 - ITAT DELHI

2016 (3) TMI 541 - ITAT DELHI - TMI - Penalty u/s 271E r.w.s 274 - undisclosed source of cash payment - Held that:- We find that the fact that Sh. Harish Bindal and Smt. Sunita Bindal had a violent acrimonious relationship is evidence on record which has not been disputed by the Revenue. The reference to the incidents set out in the police complaint made by Smt. Sunita Bindal read out by the Ld. AR citing instances of mental and physical harassment necessitating seeking police protection and int .....

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emonstrated the existence of a reasonable cause as envisaged by the said section. Thus accepting the explanation the penalty is directed to be quashed.- Decided in favour of assessee. - ITA No. 6728/Del/2014 - Dated:- 14-3-2016 - Shri J. Sudhakar Reddy, Accountant Member And Sh. Sudhanshu Srivastava, Judicial Member For the Appellant : Shri Rakesh Gupta, Adv. Shri Somil Aggarwal, Adv. For the Respondent : Shri P. Dankanunjna, Sr. Ld. DR ORDER Per Sudhanshu Srivastava, Judicial Member The present .....

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challenged unsuccessfully in appeal before the CIT (A) on various grounds including the grounds of reasonable cause. Aggrieved by this, the assessee is in appeal before the Tribunal. The background of the case as canvassed before the AO in the penalty proceedings vide letter dated 21.03.2013 is reproduced hereunder:- ".......Repayment of loans in cash is covered by section 269T of Income tax Act. The assessee is very near relative of Mr. Harish Bindal (brother-in-law) and Mr.Tarun Bindal wh .....

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...." 2. Addressing the above letter reproduced in the penalty order, attention was invited to Paper book page No.3. On the basis of the same, it was submitted by the Ld. AR that in the facts of the present case re-opening was done on the basis of tax evasion petition allegedly filed by Sh. B.D.Gupta, some anonymous person, who in fact was Sh. Harish Bindal, who is the near relative of the assessee. The said submission, it was stated, was made before the ACIT vide letter dated 31.12.2012 an .....

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loans is already proved by documentary evidence. Hence section 68 of Income Tax Act is not covered in this case. The assessee agreed that only section 269 T is partly covered in this case as the near relation Mr. Harish Bindal demanded cash and he has accepted the receipt of cash against their loan account. Section 269T was introduced with a view to counter the evasion of tax. In the instant cash the source of repayment of loan is proved with all documentary evidence. The allegation made in the .....

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assessee." 3. Inviting attention to the submissions dated 28.08.2014 advanced before the Ld. CIT (A), copy of which is placed at pages 17-42 along with annexures, it was submitted that these submissions would address reasonable cause and is relied upon. For ready-reference, relevant extract from the impugned order is reproduced hereunder:- "As required by your honour, I am enclosing the following documents for reasonable cause as provided u/s 273B of I.T. Act:- 1. Copy of Bank stateme .....

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by Sh. Harish Bindal, the said amount necessarily had to be paid in cash so as to return the loan taken from him. It was submitted that Sh. Harish Bindal refused to take payments by cheque. In view of the delicacy of the relationship with the said relative the insistence of payment in cash could not be ignored. In support of the said claim, attention was invited to copy of the complaint dated 04.05.2005 filed in the police station before the SHO, Shalimar Bagh, u/s 498A/406 diary No.7946 dated 0 .....

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