2015 (7) TMI 1090

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....5-06 vide his order dated 31.10.2007. Penalty under dispute was levied by JCIT, Range-Nadia u/s. 271D of the Act. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the levy of penalty u/s. 271D of the Act by the JCIT, Range-Nadia. 3. The only issue in this appeal of assessee is against the order of CIT(A) confirming the penalty imposed by JCIT, Range-Nadia u/s. 271D of the Act in contravention to provisions of section 269SS of the Act. Briefly stated facts of the case are that Assessing Officer observed during the assessment proceeding that the assessee had accepted loans totaling to Rs. 2,20,000/- in cash from eleven persons for an amount of Rs. 20,000/- in each case. While imposing penalty the JC....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... "4. It is now well settled that circulars issued by CBDT are statutory character and are binding on the Departmental authorities. The authorities including AO and other consequently would be bound by that circular. In the instant case, CBDT for the purpose of attracting s. 271D has set out that the loan or deposit should be in excess of Rs. 20000/- is true that what CBDT has stated may be contrary to the expressed language of s. 269SS which uses the expression "twenty thousand rupees or more". The law and the CBDT circulars can be spelled out from the following judgments of the Supreme Court. In Nãvnit Lal. C. Javeri Vs. K.K. Sen. AAC (1965) 56 ITR 198 (SC), a Constitution Bench of the Supreme Court observed "It is c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and in each of case cash loan is not exceeding Rs. 20,000/- rather it is exactly Rs. 20,000/-. Since there is a circular and which is a beneficial circular under section 269SS of the Act and Hon'ble Bombay High Court has interpreted circular no. 572 dated 3rd August 1990 (supra) wherein vide para 3 relevant portion of clause 43 is as under: "43. Secs. 271C, 271D and 271E, which were inserted in the I T Act w.e.f. 1st April, 1989, by the Direct Tax Laws (Amendment) Act, 1987, provided for the levy of penalties for certain defaults. Penalty under s. 271C was levied for failure to deduct tax at source. Penalty under s. 271D may be levied for failure to comply with the provisions of s. 269SS i.e. for taking or accepting any loan or dep....