2015 (11) TMI 804

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....spondent : Mr. Vishal Mohan, Advocate ORDER Sanjay Karol, Judge Conjoint reading of provisions of Sections 269SS and 273B of the Income Tax Act, 1961 (hereinafter referred to as the Act) enables the assessee to substantiate and explain the reasonable cause, leading to failure in complying with the provisions and receiving payments in cash, in excess of the prescribed limit. 2. Undisput....

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....the facts and circumstances of the case there was 'reasonable cause' to accept the said loan in cash, or some bonafide reason due to which the assessee did not obtain the loan in accordance with section 269SS? 2. Whether a wrong statement made by assessee that the cash was required to be deposited in the bank account to avoid bouncing of cheques can be construed as 'reasonable cause' with....

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....osecution under various statutes. It was also to save the reputation and goodwill. The cheques were deposited by the drawee as per his convenience. It stands established that after deposit of the amount, so borrowed in cash, the cheques issued in favour of the drawee stood cleared. Instead of availing the Cash Credit limit, for which the assessee was required to pay interest, he chose to borrow th....

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....on objective material, of the adjudicatory authorities. The authorities are required to see as to whether the transaction is free from doubt and/or is genuine. Commercial exigency and prudence is certainly required to be kept in mind. 8. Reliance can be sought on the following decisions to support the view taken by the authorities below: Hindustan Steel Ltd. V. State of Orissa, (1972) 83 ITR 26....