TMI Blog2023 (9) TMI 1023X X X X Extracts X X X X X X X X Extracts X X X X ..... money in cash by the assessee company, then, levy of penalty u/s 271D may be considered to be deleted. However, in the instant facts, the assessee has not been able to demonstrate any emergency/imminent circumstances which necessitated the assessee company to receive aforesaid amount in cash from its Director. Since the cash was accepted by the assessee company on working days, the argument of the assessee company that these loans were taken for emergency payments cannot be accepted. Accordingly, looking into instant facts, we are of the considered view that acceptance of cash by the assessee company was not necessitated by any emergency/imminent circumstances. In the recent case of Vasan Healthcare (P.) Ltd. [ 2021 (2) TMI 76 - S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi [herein after referred as to the CIT(A) ] erred on facts as also in law in confirming levy of penalty u/s 271D of the Act at Rs. 13,25,000/- on the ground of alleged contravention of provision of section 269SS of the Act. The penalty confirmed u/s 271D of the Act may kindly be deleted. 4. Your Honour's appellant craves leave to add, to amend, alter, or withdraw any or more grounds of appeal on or before the hearing of appeal. Total Tax Effect 13,25,000/- 3. In the instant case, at the outset, we observe that there is a delay of 396 days in filing of the present appeal by the assessee. Before us, the counsel for the assessee submitted that delay in filing of the present appeal by 396 days was owing to a mistake b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see and the same was pointed out by the Auditors in the audit report. He further held that the case laws relied upon by the assessee in support of its contention that no penalty may be levied under section 271D are distinguishable on facts. Further, during the course of penalty proceedings, the assessee submitted that the amount of loan was taken in order to meet some emergency payments during the year under consideration, and hence there existed reasonable circumstances as defined under section 273B of the Act for non-levy of penalty u/s 271D of the Act. However, the assessing officer held that the assessee has not been able to bring forth to any such emergency circumstances, which would necessitate receipt of amounts in cash from its Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case the facts are not the same. 5.7 Further, the decision of Hon ble Supreme Court in the case of Hindustan Steel Ltd. vs. State of Orissa deals with mere technicality of an offense. The Hon ble Apex Court observed that where the offence is merely technically, even if the minimum penalty is prescribed, the authority should not impose penalty. However, in the instant case, cash was accepted from the director 4 times, so the appellant is in habit of showing disregard to the provisions so it cannot be said to be a mere technicality. The appellant has to show reasonable cause in which the appellant has failed i.e. the appellant has not been able to show reasonable cause. In view the above, the penalty imposed is confirmed, ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sister concerns of the assessee had directly made payment on behalf of the assessee company, and therefore, the High Court gave relief to the assessee by looking into the particular facts of the case, which are clearly distinguishable from the instant facts of the assessee s case. Further, the Ld. DR submitted that it instant facts, the assessee has not been able to point out any imminent circumstances, which necessitated receipt of payment in cash, during the year under consideration. Accordingly, the Ld. DR submitted that the order of Ld. CIT(Appeals) may kindly be upheld. 9. We have heard the rival contentions and perused the material on record. In the instant facts, while we are in agreement with the counsel for the assessee that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en for emergency payments cannot be accepted. Accordingly, looking into instant facts, we are of the considered view that acceptance of cash by the assessee company was not necessitated by any emergency/imminent circumstances. In the recent case of Vasan Healthcare (P.) Ltd. 125 taxmann.com 266 (SC), the Hon'ble Supreme Court dismissed SLP against High Court ruling that where director of assessee-company obtained cash in excess of Rs. 20,000 as loan from a financier and deposited same in cash in bank account of company , merely because director took cash loans from financier and deposited it in current account of assessee-company on very same day and assessee utilized it to pay salaries, rent and EMI commitments, same could not be a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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