TMI Blog2022 (2) TMI 1205X X X X Extracts X X X X X X X X Extracts X X X X ..... f 273B. Hon ble High Court of Judicature at Bombay in a similar circumstance in Manish Nitin Wadikar [ 2019 (6) TMI 444 - BOMBAY HIGH COURT] held that, where the assessee failed on a given sufficient opportunities to establish any reasonable cause of violation of provisions of section 269SS, per contra makes mere assertion against the proposition of tax authorities without any supporting material in substantiating such assertion, is essentially sufficient to draw conclusion against the assertion made by the assessee, consequently the penal provision shall follow. Tribunal had occasioned to considered the correctness of levy of penalty u/s 271D for the violation of provisions of section 269SS triggered out of bonafide transaction but in the absence of any reasonable cause as contemplated in section 273B in the case of Deepak Sales Properties Pvt Ltd [ 2018 (7) TMI 1314 - ITAT MUMBAI] Held that the penalty u/s 271D is invincible in the absence of reasonable cause. We find no illegality in the penalty order; consequently, we upholding the order of Ld JCIT with no infirmity. - Decided against assessee. - ITA No. 128/RPR/2016 - - - Dated:- 25-2-2022 - Shri Ravish Sood, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional assessing officer. 4.2 During the course of penalty proceedings, a show cause notice was served and considering of submission filed by Shri Amit Rai CA, the representative of the assessee [for short AR ], the Ld JCIT imposed the penalty u/s 271D equivalent to the amount of cash deposit accepted in violation of provisions of section 269SS of the Act. 4.3 In an appeal before CIT(A), the assessee through his authorised representative Shri Amit Rai CA, made representation submitting that, such cash was received as advance towards sales from the prospective buyer of trading goods on behalf of principal supplier and deposited into his account for bank transfer, however this proposal did not yield any relief to the assessee, consequently Ld CIT(A) confirmed the order of penalty. 4.4 Aggrieved by the aforesaid order of tax authorities, the appellant assessee is before this final-fact-finding authority as a forum of last resort assailing the hardship caused by the penalty proceedings. 5. The case was posted for hearing on various occasion and for the reasons stated in the order-sheet, hearing was adjourned from time-to-time. On this date of hearing, none appeared for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... H P Sons Starts 01/04/2009 5,00,000 Total 27,00,000 6.2 Upon the information from the assessing officer, the Ld JCIT, Range - Bhilai assuming the jurisdiction initiated the penalty proceeding u/s 271D by issue of show cause notice [for short SCN ] dt 07/06/2013 which was served and in response to such SCN, multiple written submissions were made by Shri Amit Rai, CA on behalf of the appellant, contending that such was the single instance of cash receipt against trading advances and actual sales were effected to the depositors, the same was reproduce by the Ld JCIT at para 4 on page 2 of his order as; That the assessee accepted advance against order from M/s Banshi Lal Sons ₹ 5.00 Lacs; M/s Choudhary Enterprises ₹ 7.00 Lacs; M/s Dhapriya Tradings ₹ 5.00 Lacs; M/s Hari Om Traders ₹ 5.00 Lacs; M/s H.P. Sons ₹ 5.00 Lacs {the parties} during the year, which was deposited in bank and transferred to the principal for supplying material. This advance was received only once from these parties. On receipt of material from the principal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -a-via nexus in the absence of any evidential material in substantiating the claim such as copies of sales invoices, copies of delivery challans, vouchers and other corroborating statement or records etc. e. The copies of account of parties laid were deficient so for as basic information of lenders / prospective buyer is concern such as PAN, complete address details details of sale of goods / material etc 6.5 In the light of aforesaid conclusions, the Ld CIT(A) confirmed the levy penalty following catena of judicial precedents including; R K Singhal Vs CIT 221 CTR 412 (Raj), Nandi Dhall Mills Vs CIT 61 Taxmann.com 97 (Mad), Auto Piston Mfg Co Pvt Ltd Vs CIT 37 Taxmann.com 61 (Punjab Haryana), ITO Vs Nandi Promoters 13 Taxmann.com 213 (Delhi) etc. 7. The levy of penalty arises on the sole violation of provisions of section 269SS and unless we touch upon the prime code which gives birth to penalty it would serve no purpose, hence the provision of 269SS is reproduced for ready reference; 269SS Mode of taking or accepting certain loans, deposits and specified sum. No person shall take or accept from any other person (herein referred to as the depositor), any loan or depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sum means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place. 8. On a bare reading of provision of section 269SS reveals that, it does not per-se restrict any person from accepting loans or deposit exceeding ceiling, but it strictly mandates the mode of acceptance of loans or deposit exclusively through banking channels as an anti-tax evasion means or tools. However, the legislature in his wisdom provided for certain exclusion for the removal of hardship while transacting with Government, banking institution, state or central corporations and transaction between agriculturist with reasonable restrictions. Except the foregoing exception, there finds no goby in the provision except through the evince of reasonability envisaged in section 273B, hence if any transaction does not fall within the ambit of exception so carved out, or the reasonable cause behind such violation, shall transaction shall be violative of this restrictive provision of section 269SS. 9. In the instance case, the assessee also pleaded that the part of the transaction has been effected through banking cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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