TMI Blog2016 (4) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... in his Income Tax return for A.Y. 2009-10. In our view, the assessee has given a reasonable cause for receiving the amount in his account and thereafter subsequently transferred the said amount to the account of his father and also the account of aunti Smt. Vinita Sharma and in the account of Shri Ashish Sharma, cousin of the assessee. In our view, since the assessee has given a reasonable cause for not complying with the provisions of section 271D, and the reasonable cause given by the assessee is plausible, in view thereof we have no hesitation to uphold the order passed by ld. CIT (A) by virtue of which the ld. CIT (A) has deleted the penalty under section 271D. - Decided against revenue - ITA Nos. 999/JP/2013 - - - Dated:- 18-3-2016 - SHRI T.R.MEENA, AM SHRI LALIET KUMAR, JM For The Revenue : Shri Kailash Mangal (JCIT) For The Assessee : Shri Siddharth Ranka (Advocate) ORDER PER SHRI LALIET KUMAR, J.M. The present appeal filed by the revenue is arising from the order dated 17.10.2013 passed by the learned CIT (A)-I, Jaipur for the A.Y. 2009-10 whereby the ld. CIT (A) has deleted the penalty levied under section 271D of the IT Act. 2. The brief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is held to be genuine but in violation the provisions of section 269SS, the assessee has take/accepted deposit of ₹ 19,00,000/- otherwise than by an account payee cheques or account payee bank draft, which attracts penal provisions as laid down in section 271D. Therefore, penalty proceedings are initiated. 3. Feeling aggrieved by the order passed by the AO, the assessee carried the matter in appeal before ld. CIT (A). The ld. CIT (A) after considering the reply of the assessee has deleted the penalty with the following observations :- 4. I have considered submissions of the appellant and have also gone through the penalty order. A perusal of the order shows that penalty has been levied by the Addl. CIT on the ground that the appellant had deposited a sum of ₹ 19,00,000/- in cash in his savings bank account. The appellant s claim is that this amount of ₹ 19,00,000/- in cash was received by his father as advance on sale of agricultural land. The amount had to be deposited in the appellant s account as his father did not have PAN and the said amount was not accepted by any bank in the absence of PAN. 4.1. It is, however, noticed that the Addl. CIT has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... By Cheque No. 116032 (Rs.5,00,000/-) dated 22.12.2008 to his aunty Mrs. Vinita Sharma. Thus, it is obvious that even the Addl. CIT has not questioned the facts stated by the appellant and the bonafide nature of the deposits made in the appellant s account These facts clearly show that there was reasonable cause for failure on part of the appellant to comply with the provisions of the sec. 269SS. It has been held by the Hon ble Madras High Court in the case of K. Finance Chit Co. (283 ITR 329), and Delhi High Court in the case of Parma Nand (266 ITR 255), that where receipt of deposit in cash was explained on the ground that the depositor did not have bank account and the transactions were genuine, cancellation of penalty by the Tribunal was correct. The penalty, therefore, appears to be uncalled for and is, accordingly, cancelled. 4. The revenue feeling aggrieved by the order of ld. CIT (A), has challenged the order before us. The ld. D/R has submitted that the assessee is a salaried person and the cash amount has been deposited in the account in violation of section 271D and, therefore, penalty is required to be upheld and the explanation given by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn is hereby enclosed. That in such circumstances there was a reasonable cause with the appellant to deposit the cash received by his father in his bank account. Under Section 273B it has been clearly mentioned that No penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was a reasonable cause for the said failure . The appellant has proved the reasonable cause in depositing the cash in his Bank A/c by his father. The provisions of Section 273B are clearly applicable in the case of the appellant. 5. We have heard the rival contention of the parties and have also perused the record. Section 273B provides as under :- Sec. 273B. Notwithstanding anything contained in the provisions of clause (b) of sub-section (1) of section 271, section 271A, section 271AA, section 271B, section 271BA, section 271BB, section 271C, section 271CA, section 271D, section 271E, section 271F, section 271FA, section 271FB,, section 271G, clause (c) or clause (d) of sub-section (1) or sub-section (2) of section 272A, sub-section (1) of section 272AA or section 272B r subsection (1) or sub-section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the ld. CIT (A) has deleted the penalty under section 271D. Accordingly, the appeal of the revenue is dismissed. Our view is also supported by the various pronouncements of the Hon ble Jurisdictional High Court, Tribunal and other courts, which we are not reproducing herein. The said judgments have been filed on record by the ld. A/R for the assessee at pages 31 to 97 of the paper book. We are only referring herein the latest judgment in the matter of CIT vs. Smt. Dimple Yadav, 61 Taxmann.com 219 wherein Hon ble Allahabad High Court in para 16 of its order had held as under :- 16. In the light of the aforesaid, we find that even though the assessee had taken a loan in cash, nonetheless, the loan transaction was a genuine transaction and was routed through the bank account of the assessee which clearly shows the bona fides of the assessee. The cash given by the lender was not unaccounted money but was duly reflected in their books of account. The Assessing Officer also accepted the explanation and found the transaction to be genuine. The contention of the learned counsel for the appellant that since there was no urgency, the assessee could have taken the loan through cheque ..... X X X X Extracts X X X X X X X X Extracts X X X X
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