TMI Blog2018 (8) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... ound of the revenue is dismissed. See OMEC ENGINEERS VERSUS COMMISSIONER OF INCOME-TAX [2007 (9) TMI 27 - HIGH COURT , JHARKHAND] and COMMISSIONER OF INCOME-TAX VERSUS SAINI MEDICAL STORE. [2005 (2) TMI 72 - PUNJAB AND HARYANA HIGH COURT] - decided against revenue - ITA No. 159/CTK/2018 - - - Dated:- 24-8-2018 - SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER For The Assessee : Shri D.Parida/C.Parida, ARs For The Revenue : Shri Subhendu Datta, DR ORDER Per N . S . Saini, AM This is an appeal filed by the revenue against the order of the CI(A)-1, Bhubaneswar dated 1. 2. 2018 for the assessment year 2013-2014. 2. The sole issue involved in this appeal is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the amounts were received from the two sister concerns of the assessee to meet the assessee's urgent cash requirements at remote sites for labour payments and there was not enough time to make the transactions through bank . It is also argued that the main person to take decisions in financial matters in the case of the assessee and also in the cases of two sister concerns was the same person Sri S . S . Parida and Sri Parida was not aware of the provisions of section 269SS . The submission of the assessee appears to be correct . Moreover, the impugned loan transactions were all genuine transactions and the AO had accepted the same as such . In its written submission, the assessee has referred to certain case laws wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of section 269SS . vi) Keeping in view the above facts and also relying on the decisions of various judicial authorities on the issue, it appears-that the assessee may be considered to have a reasonable cause for its failure to comply with the provisions of section 269SS . The assessee is, therefore, entitled to the benefit of section 273B . Hence, the penalty of Rs . 1, 70, 00, 000/-imposed u/s . 271D is deleted . 5. Ld D. R. supported the order of the Addl. CIT and ld A. R. supported the order of the CIT(A). 6. We have heard the rival submissions, perused the orders of lower authorities and materials available on record. In the instant case, the assessee received unsecured loans of ₹ 1. 70 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee was mala fide and with the sole object to conceal money . Consequently, penalty imposed under section 271D merely on technical mistake committed by the assessee, which had not resulted in any loss of revenue, was harsh and could not be sustained in law . 9. The Hon ble P H High Court in the case of CIT vs Saini Medical Store [2005] 277 ITR 420 has held as under :- 6 . 2 . As pointed out earlier, there is no doubt about the genuineness of the transactions which have been fully accepted in the assessment made for the year under consideration . Even if, there is any ignorance, which resulted in the infraction of law, the default is technical or venial which did not prejudice the interests of the Revenue as n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduced his cash book depicting loan taken by him . The transaction of the assessee was not doubted . It is found to be genuine . Hon'ble High Court further observed that these transactions were between family and due to business exigency, there was no mala fide intention at the end of the assessee for evading taxes . The Tribunal has made reference to background in which sections 269SSand 269T were introduced in the Act . Thus, according to this decision, if an assessee has demonstrated bona fide of the transaction and business exigency for taking cash loans, then on account of this technical breach, he would not be visited with penalty . 11. Thus, on a reading of the above quoted decisions of Hon ble P H High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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