TMI Blog2018 (2) TMI 1467X X X X Extracts X X X X X X X X Extracts X X X X ..... from penalty under Section 271 D of the Act in the absence of reasonable cause. The fact that the Applicant's Appeal in quantum proceedings before CIT(A) deleted addition under Section 68 would have no bearing in respect of penalty imposed under Section 271D of the Act, for breach of Section 269SS of the Act. Even if, the Assessee has explained the identity, the source and genuineness of receipt in cash for the purpose of Section 68 of the Act, would not by itself permit / allow a party to obtain loans in cash in breach of Section 269 SS of the Act. So far as the next submission that reasonable cause made out by the Applicant, was that the Karta of the HUF being educated only upto 4th standard and was ignorant of the provisions of Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Mr. Mandar Vaidya, i/b Ameet Palkar For The Respondent : Mr. Sham Walve 1. This Notice of Motion has been taken out in the pending Appeal to stay the order dated 18th March 2015 passed by the Income Tax Appellate Tribunal (Tribunal). 2. This Appeal under Section 260-A of the Income Tax Act, 1961 (the Act), challenges the order dated 18 March 2015 passed by the Income Tax Appellate Tribunal (the Tribunal). The impugned order dated 18th March 2015 is in respect of Assessment Year 2005-06. The Appeal is awaiting admission. The Appeal itself would come up for consideration in its normal turn. 3. The Applicant states that the urgency in moving this application for stay pending the consideration of the Appeal has arisen in view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... July 2008 imposed a penalty of ₹ 1,58,95,000/- under Section 271D of the Act. This after holding that no reasonable cause for violation of Section 269SS of the Act was shown. The order dated 11 July 2008 of the Assessing Officer imposing penalty was carried in Appeal to the CIT(A) who dismissed the same. 5. Being aggrieved, the Applicant carried the issue of imposition of penalty in further Appeal to the Tribunal. By the impugned order dated 18th March 2015, the Tribunal partly allowed the Appeal by restoring the issue of amounts received in cash from agriculturists to the Assessing Officer to verify whether the agriculturists were not having banking facilities so as to delete the penalty under Section 271 D of the Act, on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and genuineness of receipt in cash for the purpose of Section 68 of the Act, would not by itself permit / allow a party to obtain loans in cash in breach of Section 269 SS of the Act. The decision of the Apex Court in Jai Laxmi (Supra) is completely distinguishable as in that case the assessment order which had initiated penalty proceedings under Section 271 D of the Act was set aside by the CIT(A) and the Assessing Officer was directed to frame assessment order denovo. In the order passed subsequent to the remand, the Assessing Officer did not initiate any penalty proceedings under the 271D of the Act. Consequently, there could be no occasion to impose penalty. Therefore, in the facts of that case as the Assessment order which initi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be impossible for the opposite party to rebut it. 9. In any case, the education of the Karta of the HUF is upto 4th standard, cannot by itself lead to presumption that he is ignorant of law. This is more particularly when the Karta is dealing with the large amounts of cash. Lack of formal education cannot by itself be the conclusive of ignorance of the law, particularly in respect of men of business. This of course, is without prejudice to the legal maxim that ignorance of law is no excuse. 10. Dehorse , the above, under Section 260 A (7) of the Act the provisions of Code of Civil Procedure are made applicable to the appeals filed under the Act. Therefore, this would necessarily require application of O.41 R.1 and R.5 of the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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