TaxTMI 
TaxTMI 
2005 (3) TMI 66
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....is appeal: "Whether, on the facts and in the circumstances of the case, the hon'ble Income-tax Appellate Tribunal was right in dismissing the appeal of the Revenue and confirmed the action of the Commissioner of Income-tax (Appeals) in cancelling the penalty of Rs. 50,000 under section 271D imposed by the Deputy Commissioner of Income-tax?" Briefly the facts are that the Income-tax Officer, Ward-2, Jind, vide his letter No. 844 dated August 6, 1997, referred the matter for initiation of penalty proceedings under section 271D of the Act as the respondent-assessee had contravened the provisions of section 269SS of the Act during the financial year 1992-93 relevant to the assessment year 1993-94 by accepting loan/deposits in cash from the pe....
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....sp; 2,000 22,000 28-4-1992 -------------------------------------------------------- A show cause notice under section 274 read with section 271D of the Act was issued to the assessee. The assessee in response thereto filed written submissions and the then Deputy Commissioner of Income-tax, Hisar Range, Hisar (now Joint Commissioner of Income-tax), imposed a penalty of Rs. 50,000 which was equal to the amount of loan accepted in cash by the assessee-firm vide order dated August 20, 1998. The assessee feeling aggrieved against the said order filed an appeal which was allowed by the Commissioner of Income-t....
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....te amount remaining unpaid; or (c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more: Provided that the provisions of this section shall not apply to any loan or deposit taken or accepted from, or any loan or deposit taken or accepted by,- (a) Government; (b) any banking company, post office savings bank or co-operative bank; (c) any corporation established by a Central, State or Provincial Act; (d) any Government company as defined in section 617 of the Companies Act, 1956 (1 of 1956); (e) such other institution, association or body or class of institutions, associations or bodies which the Central Government may,....
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.... or clause (b) of sub-section (1) or clause (b) or clause (c) of sub-section (2) of section 273, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure." Section 269SS of the Act provides for the mode of taking or accepting certain loans and deposits. It stipulates that no person after June 30, 1984, shall take or accept from any other person any loan or deposit otherwise than by an account payee cheque or account payee bank draft if the amount of such loan or deposit is Rs. 20,000 or more. Section 271D has been included in Chapter XXI of the Act which deals with penalties imposable for failure to ....