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2016 (4) TMI 1090 - ITAT JAIPUR

2016 (4) TMI 1090 - ITAT JAIPUR - TMI - Penalty u/s 271D - Held that:- It is an undisputed fact that the father of the assessee and his aunti and cousin have entered into an agreement with one Nathu Lal for sale of land and on account of sale of land, a sum of ₹ 19,50,000/- was received in cash. It is also an admitted fact that the amount of ₹ 19.50 lakhs was deposited by the assessee in his bank account as the father of the assessee was not having the PAN. Moreover, the said amount .....

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hesh Kumar. The assessee has also filed an affidavit with the Assessing Officer. The father of the assessee appellant has also declared sale transaction 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 vi .....

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sessee : 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 facts of the case are that the AO has imposed the penalty under section 271D of the IT Act for ₹ 19,00,000/- on account of cash deposit made in the bank account. Before impo .....

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008-09. The amount was received due to sale of the immovable parental property in the name of my father and Aunty (widow of my Uncle). This account was use by me as my Father was not having the PAN Number for Bank transaction at that time. I supported him as a witness for the money transfer. Later the amount was disbursed back to him and my Aunty. Details regarding that transaction i.e. registry copy of agreement of Property sale, copy of my bank account 149442 and copy of the ITR 2 Filed by my .....

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een registered on 16.2.2009. In his affidavit dated 8.11.2011 (placed on file) he has also submitted that amount of ₹ 19,00,000/- in cash was deposited in his son s Shri Akshay Kumar s saving bank account. The same was returned by him as under : (i) By Cheque No. 116031 (Rs.10,00,000/-) dated 16.12.2008. (ii) By Cheque No. 116034(Rs.4,00,000/-) dated 6.1.2009. (iii) By Cheque No. 116032 (Rs.5,00,000/-) dated 22.12.2008 to his aunty Mrs. Vinita Sharma. Keeping in view of the above and affid .....

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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 ad .....

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action have to be looked into before deciding as to whether penal provisions are attracted in a particular case of not. 4.2. A perusal of the details filed by the appellant shows that the amount of ₹ 19,00,000/- in cash was deposited in his bank account on 16.12.2008. ₹ 10,00,000/- out of this amount was transferred the same day to the savings bank account of his father Shri Niranjan. Another amount of ₹ 4,00,000/- was transferred to his father s account on 06.01.2009. ₹ .....

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here was a reasonable cause for depositing ₹ 19,00,000/- in cash in the appellant s bank account. 4.3. It is further noted that even the Addl. CIT has accepted these facts mentioned in the submission of the appellant. In the penalty order, the Addl. CIT has observed as under : It has been observed that Shri Nranjan Lal Sharma, father of the assessee has sold an agriculture land situated at village Tekhda, Tehsil Ladpura, Kota, Rajasthan for ₹ 30,00,000/- on 15.12.2008 through an agre .....

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00,000/-) dated 6.1.2009. (iii) 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. F .....

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tted 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 assessee was not in accordance with law. Whereas on the other hand, the ld. A/R has submitted that in pursuance of the notice, the assessee has given a detailed reply and the reply was duly considered by the ld. CIT (A) and thereafter the penalty has been deleted. For the sake of convenienc .....

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ppellant. The amount was deposited in the Bank A/c of the appellant on 16.12.2008 & the PAN CCVPS 8679 C was allotted to his father on 24.12.2008 i.e. after the date of the deposit of amount in the Bank. A copy of Sale Agreement, Bank A/c and PAN Card along with Allotment Letter is hereby enclosed. The amount deposited in the Bank A/c of the appellant was returned back by him to his father & aunty (coowner) by cheque as under :- Date Cheque No. Amount 16.12.2008 116031 10,00,000/- (same .....

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t is hereby enclosed. At the time of assessment proceedings, an Affidavit by father of the appellant was also filed stating the above facts. A copy of affidavit is also hereby enclosed. The father of the appellant also declared the above transaction in his IT return for that AY 2009-10 under the head Income from Capital Gain and the due tax was also deposited by him. A copy of return is hereby enclosed. That in such circumstances there was a reasonable cause with the appellant to deposit the cas .....

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rd 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 .....

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alty under section 271D is not automatic and the penalty shall not be imposed on the assessee merely on breaching the provisions of section 271D. If the assessee gives the reasonable cause, then in that eventuality the penalty shall not be imposed on the assessee. In the present case it is an undisputed fact that the father of the assessee and his aunti and cousin have entered into an agreement with one Nathu Lal for sale of land and on account of sale of land, a sum of ₹ 19,50,000/- was r .....

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n Lal Sharma and the remaining amount was deposited by the assessee through account payee cheque in the accounts of Smt. Vinita Devi W/o late Shri Mahesh Kumar and Shri Ashish Sharma son of late Shri Mahesh Kumar. The assessee has also filed an affidavit with the Assessing Officer. The father of the assessee appellant has also declared sale transaction 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 the .....

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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 Hig .....

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on 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 and should have processed the matter through regular banking channels is immaterial, inasmuch as the genuineness of the transaction has not been disputed by the Assessing Officer. Further, we find that the cash was deposited in the bank account of the assessee and the money was thereafter, routed through the banking channel for payment t .....

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