TMI Blog2013 (3) TMI 795X X X X Extracts X X X X X X X X Extracts X X X X ..... evenue. 3. The brief facts are as under: 3.1. The respondent-assessee for the assessment year 2006-2007 declared in the return of income its income at ₹ 4,29,600. He is the proprietor of M/s. Fixo-Fitwell and engaged in the business of Contract for Natural Gas. The assessing officer on scrutiny assessment finalised his income at ₹ 17,00,000 by making certain additions under section 68 of the Act on account of unexplained cash credit. 3.2. The assessing officer issued notice under section 271D of the Income Tax Act, 1961 (hereinafter referred to as the Act) on the ground that the assessee had accepted the loan/deposit exceeding the sum of ₹ 20,000 in cash from Shri Ambika Finance and as this was in contravention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank draft, unless the transaction falls under proviso provided under the said section, penalty is provided for failure to comply with such provision of section 269-SS. In other words, if a person takes or accepts any loan or deposit above the sum of ₹ 20,000 from any person in contravention of Section 269-SS of the Act by accepting the same without Account Payees cheque or draft, the law provides for levying of penalty of the sum equal to the amount of loan so taken or accepted. This is essentially provided to curb the avoidance by such transactors. 6. As can be seen in the instant case, the assessee-respondent had accepted from Shri Ambika Finance the sum exceeding ₹ 20,000 in cash. The Commissioner (Appeals) held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad discounted cheques for their working capital. Disbelieving the version of the assessee-respondent, the assessing officer held that it could not prove the genuineness of the transactions and it eventually added the amount under section 68 to the income of the assessee. Section 68 of the Act permits the revenue to credit any sum which is found credited in the books of an assessee maintained for any previous year where he can offer no explanation about the nature and source thereof or any explanation offered in the opinion of the assessing officer is not satisfactory. Unless the explanation is reasonable and acceptable as regards the sum found credited in the books maintained by the assessee, the assessing officer can add such amount to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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