2015 (10) TMI 321

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....93 was justified on the facts and in the circumstances of the case? 2. Whether the Tribunal is correct in concluding that the provisions of Section 269SS of the Act were attracted to the transactions under consideration with a view to levy penalty under Section 271D of the Act? 3. Whether the Tribunal is correct in concluding that there was no reasonable cause existed/made out in terms of Section 273B of the Act with a view to consider the dropping/cancelling of the said penalty?" 2. During the course of assessment proceedings, relating to the assessment year 1992-93, it was found that the assessee had received the following cash payments:- "15.4.91 20,000 Cash 14.5.91 45,000 Cash 27.8.91 75,000 ....

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.... in excess of the specified sum, were indicated even in their balance sheet as "unsecured loan". Once it is found that cash received by the appellant on various dates were accounted in the balance sheet, as unsecured loan, it is not possible for us to come to any conclusion other than the conclusion that the assessing officer, the first appellate authority and the Tribunal have reached to hold that the provisions of section 269SS are attracted. Hence, the second question of law is answered against the assessee in view of the factual finding that the assessee themselves have accounted the receipts as "unsecured loan" in their balance sheet. 7. On the question of penalty, Mr.S.Sridhar, learned counsel for the assessee contended vehemently ....

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....ause for the failure. But, what is reasonable cause is not clearly indicated either in section 269SS or in section 273B. Therefore, in an appeal under section 260A, we can only go by the question whether the exercise of discretion to find out the existence or nonexistence of a reasonable cause was properly explained by the authorities or not. 10. In para 8 of its order, the Tribunal has considered this question. Para 8 of the order reads as follows:- "The next point raised by both the sides is that as to whether there exists a reasonable cause or not? And as to whether the onus is on the Department or on the assessee to prove that there exists a reasonable cause. Even though, the assessee was not in need of money, all these loan....