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Shri Pintu Karmakar Versus Joint Commissioner of Income-tax

2015 (7) TMI 1090 - ITAT KOLKATA

Levy of penalty u/s. 271D - Held that:- The assessee admitted the fact that the assessee had received a sum of ₹ 20,000/- from each of eleven creditors totaling to ₹ 2,20,000/- in cash. The reasonable cause for receipt of this cash loan was that the assessee received cash loan from relatives, who are neither income tax assessee nor having any bank account. Hence, he has no other alternative except to receive loans in cash for an amount of ₹ 20,000/- from each of them. CBDT Circ .....

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1911/Kol/2012 - Dated:- 8-7-2015 - SHRI P. K. BANSAL, AM & SHRI MAHAVIR SINGH, JM For the Appellant: Shri Sunil Surana, FCA For the Respondent: Shri Pijush Mukherjee, JCIT-SR-DR ORDER PER SHRI MAHAVIR SINGH, JM: This appeal by assessee is arising out order of Commissioner of Income Tax (Appeals)-XXXVI, Kolkata in appeal No.684/CIT(A)-XXXVI/Kol/2009-10/1695 dated 03.12.2012. Assessment was framed by ITO, Wd-4, Krishnagar, Nadia u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to .....

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of the Act. Briefly stated facts of the case are that Assessing Officer observed during the assessment proceeding that the assessee had accepted loans totaling to ₹ 2,20,000/- in cash from eleven persons for an amount of ₹ 20,000/- in each case. While imposing penalty the JCIT held that the assessee did not deny receiving loans in cash in contravention of the provisions of section 269SS of the Act. Hence, he imposed the penalty u/s. 271D of the Act. Aggrieved, assessee preferred app .....

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neither income tax assessee nor having any bank account. Hence, he has no other alternative except to receive loans in cash for an amount of ₹ 20,000/- from each of them. These facts are undisputed but before us Ld. Counsel for the assessee relied on CBDT Circular No.572 dated 03.08.1990 reported in (1999) 87 CTR (St.) 1, and stated that this circular has clearly brought out the provision of section 269SS explaining that for taking or accepting any loan or deposit in excess of ₹ 20, .....

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that circular. In the instant case, CBDT for the purpose of attracting s. 271D has set out that the loan or deposit should be in excess of ₹ 20000/- is true that what CBDT has stated may be contrary to the expressed language of s. 269SS which uses the expression twenty thousand rupees or more . The law and the CBDT circulars can be spelled out from the following judgments of the Supreme Court. In Nãvnit Lal. C. Javeri Vs. K.K. Sen. AAC (1965) 56 ITR 198 (SC), a Constitution Bench o .....

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er attaches to the circulars even if they be found not in accordance with the correct interpretation of the section and they depart or deviate from such construction, when they are issued in exercise of the statutory powers under s. 119. It was however clarified that the Board cannot pre-empt a judicial interpretation of the scope and ambit of the provision and further could not impose a burden on the taxpayer higher than what the Act itself, on a true interpretation, envisages. It was observed .....

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