2002 (7) TMI 413

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....Revenue against the order of CIT(A) dated 14-2-1997 for assessment year 1995-96 wherein the learned CIT(A) has cancelled the penalty of Rs. 1,75,000 levied under section 271D of the Income-tax Act, 1961. 2. Short facts of the case are that during the course of processing of income-tax return under section 143(1)(a) for assessment year 1995-96, the Assessing Officer noticed that the assessee firm ....

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....not maintain any bank accounts. The assessee's transactions are bona fide and motivated by commercial consideration. Moreover the assessee was under bona fide belief that acceptance of cash deposits or loan within Rs. 20,000 would not attract the provisions of section 269SS. The Assessing Officer was not satisfied with the explanation and levied the impugned penalty of Rs. 1,75,000. 3. The learne....

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....the decision of the Hon'ble Supreme Court in the case of Asstt. Director of Inspection (Investigation) v. Kum. A.B. Shanti [2002] 255 ITR 258 (SC) wherein it is held as under : "The object of introducing section 269SS is to ensure that a taxpayer is not allowed to give false explanation for his unaccounted money, or if he makes some false entries, he shall not escape by giving false explanation f....