2015 (7) TMI 1090

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....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 JCIT held that the assessee did not deny rec....

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....ssued 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 clear that a circular of the kind which was issued by the ....