TMI Blog2019 (2) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... osition of the assessee resulted in default and delay in repayment of loan by the assessee and since this position was duly supported by the fact that the matter was referred to arbitral Tribunal, we are of the view that the insistence of repayment of loan in cash by SREI was natural corollary and the same constituted a reasonable cause for the repayment of loan in cash by the assessee in violation of section 269T. Keeping in view all these facts and circumstances of the case, we are of the view that it is not a fit case to impose penalty u/s 271E and cancelling the said penalty imposed by the AO and confirmed by the CIT(A), we allow this appeal of the assessee. - I.T.A. No. 916/Kol/2018 - - - Dated:- 15-2-2019 - Shri P.M. Jagtap, Vice P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essed hard for lump sum payment of ₹ 2,95,000/- otherwise the company would take repossession of the financial machinery due to default by the assessee firm in repayment of loan as per agreed schedule. Inspite of repeated request by the partner of the firm that he would pay the amount of ₹ 2 lacs ninety five thousand by a/c payee cheque after depositing the cash into Bank a/c of the firm, he did not agree collected ₹ 2,95,000/- in cash. The default was committed only because the agent of the firm had insisted to repay the amount of loan in cash in gross violation of the terms of agreement as mentioned in point no. 2.14 of the agreement under place mode of payment by the customer (Xerox copy of the agreement money rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee before the Ld. CIT(A). The Ld. CIT(A) however did not accept the same in the absence of any evidence produced by the assessee to substantiate its claim that M/s. SREI had insisted on repayment in cash which compelled the assessee to repay the loan in cash. He accordingly confirmed the penalty of ₹ 2,95,000/- imposed by the AO u/s 271E of the Act. Aggrieved by the order of the Ld. CIT(A), the assessee has preferred this appeal before the Tribunal. 5. We have heard both the sides and also perused the relevant material available on record. It is observed that the assessee had taken a loan from M/s. SREI Equipment Finance Ltd. for purchase of machinery and there was delay on the part of the assessee in repayment of the said loan. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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