TaxTMI 
TaxTMI 
2003 (12) TMI 577
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....case and in the interest of justice we condone the delay. 3. The ground raised by the assessee is that the CIT(A) erred in upholding penalty of Rs. 10 lakhs imposed on the assessee under section 271D for alleged contravention of section 269SS namely accepting loan or deposit of more than Rs. 20,000 in cash. 4. During the assessment proceedings the Assessing Officer noticed that the assessee has accepted/received loans of Rs. 20,000 or more otherwise than by a crossed cheque/draft. The details of such loans and deposits are as under : 1. Shri Hastimal R. Jain Rs. 3,00,000 2. Shri Parasmal R. Jain Rs. 1,00,000 3. Shri Mangilal R. Jain Rs. 1,00,000 4. Shri Pankaj P. Jain Rs. 2,25,000 5. Pavanben H. Jain Rs. 1,25,000 6. Vimla....
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.... assessee's bank account on 31-12-1997. These persons were directors or members of the assessee-company and the amounts under consideration were the amounts declared by them under VDIS in their personal capacity as they did not have personal bank account, the said amounts were deposited in assessee company's bank account directly. The fact that the amounts were deposited in cash in assessee-company's bank account were declared in the VDIS form as well as in the certificate issued by the CIT - Baroda. The ld. AR further submitted that there are number of judgments wherein it has been held that if there was a genuine and bona fide transaction and if for any reason the taxpayer could not get a loan or deposit by account payee cheque or demand ....
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....or venial breach not to be penalized - ITO v. Sunil 80 TTJ 1 (Pune) (TM). Sreenath Builders 66 TTJ 113 (Ahd.) Bombay Conductors & Electrical Ltd. 56 TTJ 580 (Ahd.). Cash not with a view to explain unaccounted cash. No. 271 D-80 TTJ 82 (Delhi). Ignorance of law - reasonable 271D - Dr. Deepak 58 TTJ 524 (Bom.). No conscious disregard of 269SS - No. 271D - ITO v. Rajendra Trading, 48 ITD 210 (Chd.). If deposit genuine, No. 271D - Joshi Bros. [2003] May ACAJ-102. Directors unilaterally bringing money for project - Chandra Cement 68 TTJ 35 (JP)." 6. The ld. DR on the other hand relied upon the orders of the lower authorities and submitted that the declaration under VDIS gives immunity to the person declaring the income but no immunity is g....