TMI Blog2016 (12) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... 271D is not leviable. See Smt. Kusum Dhamani vs. Addl. CIT [2015 (4) TMI 144 - ITAT JAIPUR ] - Decided in favour of assessee - ITA No. 41/JP/2016 - - - Dated:- 7-11-2016 - SHRI BHAGCHAND, ACCOUNTANT MEMBER For The Assessee : Shri Gulab Rai Ramchandani (assessee) For The Revenue : Smt. Poonam Rai, DCIT-. DR ORDER PER BHAGCHAND, AM The assessee has filed an appeal against the order of the ld. CIT(A), Ajmer dated 28-10-2015 for the assessment year 2010-11 raising therein following grounds:- (1) That on the facts and in the circumstances of the case, the ld. CIT(A) grossly erred in upholding the validity of the order passed by the JCIT, Range-1, Ajmer under the provisions of Section 271D of I.T. Act, 1961. (2) That on the facts and in the circumstances of the case, the ld. CIT(A) grossly erred in sustaining the penalty of ₹ 2,83,500/- under the provisions of Section 271D of I.T. Act, 1961. 2.1 Apropos Ground No. 1 and 2 of the assessee, it is observed that assessment in the case of Shri Gulab Rai Ramchandani was completed u/s 143(3) of the I.T. Act on 18-03-2013 for the assessment year 2011-12. During the course of assessment proceedings, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the above show cause notice, the assessee Shri Gulab Ram Ramchandani appeared personally on 27-06-2013 and submitted his reply before the JCIT, Range-2, Ajmer. The conclusive observation of the JCIT, Range-2,Ajmer as to imposition of penalty of ₹ 2,83,500/- u/s 271D of the Act on the assessee is as under:- On going through the above, it is observed that the assessee in his submission has himself admitted the fact that he has accepted the loans from various persons in cash during the year under consideration. The assessee further argued that he was under impression that there is no necessity to accept a loan below the monetary limit of ₹ 20,000/- through a cheque or demand draft. He had no idea that even the aggregate if exceeded ₹ 20,000/- resulted into contravention of Section 269SS of the I.T. Act , 1961. In view of the entire facts and circumstances of the case, I hold that the assessee has violated the provisions of Section 269SS of the Income Tax Act, 1961 by accepting a sum of ₹ 2,83,500/- in cash. It is no where relevant that the assessee has made it knowingly or otherwise as the ignorance of law has no excuse. Therefore, I impose a penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the penalty levied by the AO hereby confirmed. 2.3 During the course of hearing, the assessee prayed that these deposits received by the assessee are less than ₹ 20,000/- and they were taken from the close relatives and family members. The assessee was under bona fide belief that such transaction of less than ₹ 20,000/- can be taken. The assessee further prayed that the genuineness of the loans were established before the AO who never doubted their authenticity and the funds were taken to meet out the urgent need of the business of the assessee. There was no loss to the Revenue. Moreover, there was no intention of the assessee to defray or infringe the law. The assessee relied on the decision of Hon'ble Jurisdictional High Court in the case of CIT vs. Raj Kumar Sharma, 294 ITR 131 wherein the Hon'ble High Court rejected the contention of the Revenue and deleted penalty u/s 271D after observing as under:- We are not persuaded by the submission of counsel for the Revenue . Section 271D of the Income Tax Act provides for penalty failure to comply with the provisions of Section 269SS of the Incometax Act. According to this provision, if a person, int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 19,000/- Rekha Sangtanni 03-04-2009 Cash 19,000/- - do - 17-04-2009 Cash 19,000/- Sneh Ramchandani 01-04-2009 Cash 19,000/- Sushil Kumar Ramnani 01-04-2009 Cash 19,000/- - do - 02-04-2009 Cash 19,500/- Sangeeta Ramchandani 05-04-2009 Cash 18,000/- - do - 06-04-2009 Cash 19,000/- - do - 07-04-2009 Cash 19,000/- - do - 10-04-2009 Cash 19,000/- - do - 13-04-2009 Cash 19,000/- - do - 15-04-2009 Cash 19,000/- - do - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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