2002 (7) TMI 413

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.... This appeal is filed by the 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 Office....

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....the deposits from agriculturists who are illiterate persons and do 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 explanat....

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....d the penalty. During the course of hearing our attention was drawn to 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 ma....