2015 (1) TMI 393

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....that the assessee had accepted cash deposits of Rs. 5,21,000/- from five parties otherwise than by account payee cheques or account payee bank drafts and the "aggregate amount" was more than 20,000/- in each case. Therefore, the Assessing Officer imposed penalty of Rs. 5,21,000/- under Section 271D of the Income Tax Act. 2.1. Against the order of the Assessing Officer, the assessee filed an appeal before the Commissioner of Income Tax (Appeals). The CIT(A) partly allowed the said appeal and restricted the penalty to Rs. 4,10,100/-. Being aggrieved by the said order, the assessee filed an appeal before the Tribunal. The Tribunal vide impugned order dated 19.05.2006 allowed the appeal of the assessee. Hence, this appeal is filed at the insta....

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....any person otherwise than by an account payee cheque or account payee bank draft from any person exceeding rupees twenty thousand rupees or more. Section 269SS of the Act prohibits the same after the 30th June 1984. Section 271D makes such person who received the amount in contravention of provision of Section 269SS liable for penalty, a sum equal to the amount of loan or deposit so accepted. Section 273B of the Act of course carves out the way in certain cases and provides that no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions which includes Section 271D if he proves that there was reasonable cause for the said failure.        &....

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....produced, but, also additionally, transactions were reflected in the accounts of assessee and the advancement of loan to the assessee had been reflected in the books of account of those persons from whom the loan had been received. The identity of those persons has also been well established. The assessee also had given satisfactory reason for taking such loan. His bona fide belief that such transactions would not attract provision of Section 269SS on the ground that they were agriculturists and lived in remote villages also was one of the grounds which has weighed with both the authorities.        13. In view of forgoing discussion, we are of the opinion that no error has been committed by both the authoritie....