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TMI Blog2019 (1) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... peal by the assessee arises out of the order passed by the CIT(A)-II, Pune on 12-12-2013 in relation to the Assessment Year 1999-2000 confirming penalty under section 271D of the Income-tax Act, 1961 (hereinafter also called `the Act'). 2. It is a second round of proceedings before the Tribunal. In the first round, the Tribunal remitted the matter to the file of ld. CIT(A) for disposal of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hy penalty u/s.271D of the Act be not imposed in this regard, the assessee submitted that its business activities were close and inoperative for about last 7 years and the assessee firm had borrowed money from many private money lenders and Shree Suvarna Sahakari Bank Ltd. since last 10 years. To meet the financial crunch of the firm, the assessee raised certain loans in cash from unorganized fina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Once there is violation of the provisions of section 269SS, penalty is triggered u/s.271D of the Act. However, it is relevant to note that section 273B deals with certain penal provisions, including section 271D, and provides that no penalty shall be imposed if the assessee succeeds in proving that the failure resulting in imposition of penalty was for a reasonable cause. Thus, it is evident t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the imposition of the instant penalty. Further, the assessee had a bank liability of about Rs. 50 crore against mortgage of assets of about Rs. 5 crore only, which fact has not been falsified. The submissions made by the assessee in this regard have not been controverted by the AO or the ld. CIT(A) in any manner. When this fact is seen in the light of return filed by the assessee declaring loss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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