TMI Blog2023 (1) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... ty under section 271D would follow. The assessee has explained the circumstances under which the cash deposit, which was in the nature of mistaken bank challan entry was received by the assessee. The staff filled the name of the depositor correctly but the account number was wrongly mentioned - The same was rectified by the assessee on the very next day i.e. on 25.08.2012 by remitting the said amount of Rs. 4,78,000/- by issuing Cheque No. 2623 to M/s. Om Ceramics to prove the genuineness. The assessee also produced the banking challan of cash deposits and certificate from Bank of Baroda, as well as the bank statement and an affidavit filed by assessee s staff. Assessee also produced before us the Income Tax Returns filed by M/s. Om Cera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat assessee borrowed unsecured loans from related parties. The assessee has accepted a loan of Rs. 4,78,000- in cash on 24.08.2012 which is found to be in contravention to Section 269SS of the Act. Therefore the assessee was issued a show cause notice why not a penalty u/s. 271D is leviable in contravention to Section 269SS of the Act, namely loan availed by cash mode. 2.2. The assessee vide letter dated 16.03.2018 replied as follows: .. Your goodself has issued show cause notice no. Addl.CIT/R- 3(1)Ahd Penalty/OCPL/2017-18 dated 09.03.2018. Vide the said notice your goodself has asked us to show cause why an order imposing penalty us. 271D of the Act should not be made on acceptable of loan of Rs. 4,78,000/- in cash on 24.08.2012 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l error as in this case two sister concerns were carrying on the business from the same premises and due to a clerical error of the staff of the sister concerns, the cash belonging to the sister concern amounting to Rs. 1,50,000/- was deposited in assessee s account in Abhyuday Co-operative Bank where both the assessee ad the sister concern had the bank accounts The copy of the same decision is attached herewith relying on the decision of the Tribunal in case of ITO vs. Paramount Builders. Therefore, your goodself is requested to drop the penalty proceedings initiated u/s. 271D of the Act . 2.3. The Assessing Officer has not accepted the reply submitted by the assessee and held that M/s. Om Ceramics has confirmed to have a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sister concern M/s. Om Ceramics. The Ld. Counsel produced before us copy of the Certificate issued by Bank of Baroda to show the genuineness of the transaction. The assessee also produced the copy of the Income Tax Returns filed by M/s. Om Ceramics to prove that the sister concern is also functioning in the same premises of the assessee. Further an Affidavit filed by its reply is also produced before us. Thus pleaded that there was a genuine and reasonable cause in depositing the cash in the assessee s account which was being rectified on the next day by issuing cheque in favour of M/s. Om Ceramics. Therefore the assessee should not be levied of penalty u/s. 271D of the Act. The assessee also further informed that the assessment is also en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received by the assessee. However the same was rectified by the assessee on the very next day i.e. on 25.08.2012 by remitting the said amount of Rs. 4,78,000/- by issuing Cheque No. 2623 to M/s. Om Ceramics to prove the genuineness. The assessee also produced the banking challan of cash deposits and certificate from Bank of Baroda, as well as the bank statement and an affidavit filed by assessee s staff. The assessee also produced before us the Income Tax Returns filed by M/s. Om Ceramics which carry the same address that of the assessee herein. 6.1. Taking into overall consideration of the facts in the present case, the assessee has proved a reasonable cause of wrongly coating the bank account number of the sister concern which was rect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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