TMI Blog2005 (1) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee-firm had been dissolved and two of its partners had expired. The order of the CIT(A) was not served on any of the partners, but the same was served on a third party, who was accountant of a neighbouring concern. He delivered the order only on 16th Sept., 1995. The learned counsel for the assessee Shri Kharaiti Lal Arora engaged the services of another advocate of Jalandhar for filing of an appeal. Learned counsel engaged for an appeal was under the impression that the order of the CIT(A) had been received on 16th Sept., 1995 and, therefore, the appeal was filed on 15th Nov., 1995 i.e., well within the time. Thus, it was submitted that the delay for five days took place under a bona fide impression that the order had been served ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty of Rs. 40,000 under s. 271D of the IT Act, 1961. The facts of the case are that the AO observed that the assessee had accepted cash loans of Rs. 20,000 each from two persons in violation of provisions of s. 269SS. He, therefore, initiated penalty proceedings under s. 271D of the IT Act. In response to notice issued, the assessee had explained that this was first year of assessee's business. The assessee carried on business of fertilisers and pesticides. The partners of the firm were basically farmers. The principal. namely, M/s Bayers India Ltd. insisted for making payment of Rs. 50,000 as a precondition for supply of pesticides. The money was urgently required and cash balance as per cash book was only Rs. 14,749. Therefore, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e it was stated that the provisions of s. 26988 shall be attracted only in case where amount of loan exceeded Rs. 20,000. In the present case, the amount in question was Rs. 20,000 and, therefore, such provisions were not attracted. Relying on the decision of Tribunal, Chandigarh Bench, in the case of ITO vs. Dharamvir (2002) 253 ITR 1 (Chd)(AT), the learned counsel submitted that the instructions issued by the CBDT were binding on the field authorities. Therefore, it was contended that the learned CIT(A) ought to have cancelled the impugned penalty. He also relied on the decision of Tribunal. Ahmedabad Bench, in the case of Shreenathji Corporation vs. Asstt. CIT (1997) 58 TTJ (Ahd) 611, where it was held that penalty under s. 271D would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Rs. 20,000. Such instructions of the Board were binding on the field officer. Therefore, even otherwise penalty under s. 271D was not leviable. In any case it constituted a reasonable cause for accepting cash loans. Besides, it is a fact that source of these loans has been accepted by the AO. Therefore, at the most it could only be a technical lapse for which no penalty is leviable. Reliance in this regard is placed on the judgment of Hon'ble Supreme Court in the case of Hindustan Steels Ltd. vs. State of Orissa (1972) 83 ITR 26 (SC). In the light of these facts and circumstances of the case, I am of the considered opinion that the learned CIT(A) was not justified in sustaining the impugned penalty. Accordingly, the order of the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), the learned counsel submitted that provisions of s. 269T were attracted only in a case where amount returned was a deposit and not a loan. He submitted that it is precisely for this reason that the provisions of s.269T have been amended by the Finance Act, 2002, w.e.f. 1st June, 2002. In the present case, the assessment year is 1992-93. Therefore the amended provisions would not be applicable. He pleaded that since the amounts returned were not deposits, no penalty under s. 271E was leviable. He further submitted that since the amounts in question were not deposits, the assessee was under a bona fide belief that the amount could be returned in cash. 9.2 The learned Departmental Representative, on the other hand, heavily relied on the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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