TaxTMI 
TaxTMI 
2015 (11) TMI 1370
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....6528/Del/2013. 2. The following grounds have been raised in ITA No. 6528/Del/2013 (AY 2009-10) :- "1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the penalty u/s. 271D of the I.T. Act, 1961 of Rs. 27,01,600/-. 2. That the order of the Ld. CIT(A) is erroneous and is not tenable on facts and in law. 3. That the appellant craves leave to add, alter, amend or forgo any ground(s) of the appeal raised above at the time of the hearing." 3. The following grounds have been raised in ITA No. 6529/Del/2013 (AY 2009-10) :- "1. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the penalty u/s. 271E of the I.....
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....re the Tribunal. 7. Ld. DR relied upon the order of the Assessing Officer and further relied upon the decision of the Madras High Court in the case of P. Baskar vs. CIT 340 ITR 560 wherein it has been held that except for the mere statement that the receipt of amount in cash was on account of business exigency and to meet the liquidity, there was no material to show that in fact there was a real exigency that compelled the assessee to take a cash loan. Penalty had to be levied. 8. On the other hand, Ld. Counsel for the assessee relied upon the order of the Ld. CIT(A) and also relied upon the following cases laws and stated that the present case of the assessee is squarely covered by these case laws:- (a) Kamen Jaswantlal Shah....
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....thority has elaborately discussed the issue in dispute by considering the submissions of the Ld. Counsel of the assessee and adjudicated the issue in dispute as under:- 6. After considering nature of transactions the issue to be examined in the case under consideration whether penalty under section 271 D is leviable when assessee was having reasonable cause. I noticed that while introducing section 269SS, section 273B was also incorporated in the statute which provides that no penalty shall be imposable on a person or an assessee, as the case may be, for any failure referred to in the said provision if the assessee proves that there was a reasonable cause for such failure. In other words, penalty is not automatic under section 271D....
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.... It was submitted that in case of urgency in business, the assessee took loan from her husband each amounting below Rs. 20,000/-. The A.O. did not doubted about the genuineness of the transactions as the assessment order was passed without any adverse inference and the returned income was accepted without any additions or disallowances. From the facts of the case, we find that the assessee took small amounts of money from time to time and repaid back in small amounts was in accordance with commercial expediency of assessee's business as the demand of business of the assessee was such at that point of time. The bona fide transactions of the assessee carried out in accordance with commercial expediency and business need amounts to reasona....
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....in the accounts duly maintained by both. In fact, the purpose for which the said amount was received is also clear from the material on record and therefore, there is nothing to indicate that this amount is paid as loan or deposit. I find considerable cogency in the assessee's submission that in the absence of such material on record keeping in mind the relationship between the parties the nature of transaction coupled with the fact that the assessee was undergoing a financial difficulty. I also find that the case law relied upon by the Ld. DR is based on different facts i.e. there is no material to show the real exigency to take cash loan. However, in the case laws cited by the Ld. Counsel of the assessee there was definite sufficient caus....