TMI Blog2016 (6) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... alty and such discretion needs to be exercised with wisdom and in a fair and just manner. Even if the relevant provisions of law prescribe levy of a minimum penalty, it does not mean that penalty must necessarily be imposed in every case falling within Sections 269SS and 269T. Even if the minimum penalty is prescribed the higher authorities will be justified in refusing to impose penalty when there is a technical breach or violation of the provisions of the Act - Decided in favour of assessee - I.T.A No. 75(Asr)/2015 - - - Dated:- 17-6-2016 - Sh. A. D. Jain, Judicial Member And Sh. T. S. Kapoor, Accountant Member For the Appellant : Sh. R.K. Gupta (Ad.) For the Respondent : Sh. Umesh Takyar (DR.) ORDER Per T. S. Kapoor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be no business exigency forcing the Branch Manager of Islamia College, Goshbug Boniyar Branches of the appellant bank to make repayments of ₹ 375189/- to 13 number of depositors in cash all exceeding ₹ 20000/-. The repayment of deposit in contravention of provisions of sec. 269T cannot be made merely because a depositor does not have a bank account of expressed his/her inability to open the it Sec. 269T of the Income Tax Act, 1961 clearly provides that no banking company a in sec. 269SS explanation (i) shall repay loan or deposit made with it otherwise than through account payee cheque or account payee bank draft drawn in the name of the person as who has made the loan or deposit if the amount of loan or deposit together with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epositors has not been doubted by the authorities below and the repayments of depositors in view of hardships of depositors is a reasonable cause for failure to comply with any provisions of the Act. The purpose of introduction of the penal provisions in the legislature were to curb black money and benami transactions. The purpose of legislature can never be to impose penalty in case of genuine transactions. The penal provisions of section 271D and 271E confer a discretion on the authorities to levy or not to levy penalty and such discretion needs to be exercised with wisdom and in a fair and just manner. Even if the relevant provisions of law prescribe levy of a minimum penalty, it does not mean that penalty must necessarily be imposed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and no claim of bogus transactions has been made by Revenue Authorities. The purpose of introduction of these sections in the legislature were to curb black money and benami transactions. The purpose of legislature was never to impose penalty in case of genuine transactions. The penal provisions of section 271E confer discretion on authorities to levy or not to levy penalty and such discretion needs to be exercised with wisdom and in a fare and just manner. Even if the relevant provisions of law prescribe the levy of penalty, it does not mean that penalty must necessarily be imposed in every case falling within the provisions of section 269T. Even if penalties are prescribed the higher authorities will be justified in refusing to impose pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ention to avoid or evade the tax. The findings of the CIT(A) have been confirmed in appeal by the Tribunal. Therefore, the findings recorded by the CIT(A) and the Tribunal that the assessee had shown reasonable cause for the failure to comply with the provisions of s. 269T is a finding of fact based on appreciation of material on record. It does not give rise to any question of law, much less substantial question of law. Accordingly, the appeal is dismissed. In the present cases, the Department has not doubted the genuineness of the transactions and has imposed upheld the penalties holding that the reasons for repayment as submitted by assessee did not constitute reasonable cause. We further find that in different years the violati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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