TMI Blog2003 (10) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... e case that in asst. yr. 1992-93 under s. 143(3) on 29th March, 1995, on verification of the records it was noticed that during the previous year relevant to asst. yr. 1992-93, the assessee had taken deposits from Ambuja Agro Industries Ltd. of Rs. 33,59,092 otherwise than by an account payee cheque/draft. The assessee had taken these deposits in violation of provisions of s. 269SS of the IT Act, 1961. The AO had given a show-cause notice and assessee had given an explanation, but AO was not satisfied with the explanation and imposed the penalty under s. 271D of Rs. 13,44,999. The CIT(A) has deleted the penalty by observing as under: "9. After going through the rival contentions, I am of the opinion that on merits, the imposition of penal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rily requires involvement of transfer of money which is missing in this case. This being the situation, in my opinion, penalty has been imposed on wrong presumption. For arriving at this decision, I am guided by judgment of Hon'ble Tribunal, Ahmedabad Bench, in ITA No. 1609/Ahd/1994 for asst. yr. 1991 in case of Bombay Conductors and Electricals Ltd. and judgment of the Tribunal, Jaipur Bench, in case of Jagvijay Auto Finance (P) Ltd. vs. Asstt. CIT (1995) 52 ITD 504 (Jp). 10. Further, even if for arguments' sake it is accepted that a breach of a statutory provisions is there, still there is existence of a reasonable cause available to the appellant in terms of provisions of s. 273B. For coming to this decision, I am guided be very clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions inter se between the sister concerns made with a view to meet the business necessity and made under the bona fide belief and under ignorance of the relevant provisions of law is a valid excuse and does constitute a reasonable cause within the meaning of s. 273B. 12. It is accordingly held that the existence of a reasonable cause in terms of provisions of s. 273B is there. The penalty levied is, therefore, cancelled. 13. In the result, appeal is allowed." 3. We have heard the parties and considered the rival submissions. Looking to the facts and circumstances of the case, we find that in the instant case, the assessee has transferred the funds from one concern to its sister concern. There was no evidence to show that money ..... X X X X Extracts X X X X X X X X Extracts X X X X
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