TMI Blog2005 (5) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... the funds were not available for meeting day-to-day expenses, therefore, loans were taken in cash and when the funds were available, the same were returned in cash accordingly. The assessee is running a school for deaf and dumb children/persons and meets all its expenses from donations or grants - Tribunal came to the conclusion that there were no mala fides on the part of the assessee and there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case was processed under section 143(1)(a) of the Act, later was selected for scrutiny and notice was issued to the assessee under section 143(2) of the Act and finally the Assessing Officer vide his order dated March 10, 2000, assessed the assessee at Rs. 4,64,785 and directed the interest to be charged under section 234B and also to initiate penalty proceedings under sections 271D and 271E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er: "On the merits also I find that there was a reasonable cause in accepting the loan in cash and again repaying the same in cash, as the society runs a school for deaf and dumb children/persons. All the expenses are met from the donations or grants received from the Government as well as from private parties. The funds were not available for meeting the day-to-day expenses, therefore, loans we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the question of law as framed, be answered in favour of the Revenue. As per the case of the Revenue, the provisions of sections 269SS and 269T of the Act had been violated as the assessee had made payments in cash. Factually, it may not be so very incorrect. The Tribunal has recorded a finding that the funds were not available for meeting day-to-day expenses, therefore, loans were taken in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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