TaxTMI 
TaxTMI 
2005 (2) TMI 72
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....sent appeal are that the Income-tax Officer, Ward-2, Jind, vide his office letter No. 844 dated August 6, 1997, referred the matter for initiation of penalty proceedings under section 271E of the Act as the assessee had contravened the provisions of section 269T of the Act during the financial year 1992-93 relevant to the assessment year 1993-94 by making repayment of loan/deposits in cash to the following persons as per the details given below: -------------------------------------------------------------------------- Sr. Name of the person Amount (Rs.) Total (Rs.) Date of No. repayment -------------------------------------------------------------------------- (1) (2) ....
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....; 10,000 31-8-1992 10,000 12-9-1992 400 40,400 23-9-1992 ----------- 5. Shri Satbir Singh &nbs....
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.... 10,000 5-11-1992 10,000 6-11-1992 1,600 51,600 7-11-1992 ----------- 7. Shri Sumer Singh 10,000 &nb....
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.... and he supported the order imposing penalty. He argued that the orders of the Commissioner of Income-tax (Appeals) and the Tribunal cancelling the penalty are perverse and, therefore, substantial question of law as claimed by the Revenue arises in this appeal. We have heard learned counsel for the Revenue and with his assistance have perused the record. The relevant provisions of sections 269T, 271E and 273B of the Act for decision of the present appeal are reproduced as under: "269T.(1) No company (including a banking company), co-operative society or firm shall repay to any person any deposit otherwise than by an account payee cheque or account payee bank draft where the amount of the deposit, or where the amount of the deposit is to be repaid together with any interest, the aggregate of the amount of the deposit and such interest, is ten thousand rupees or more: Provided that where the repayment is by a banking company or co-operative bank, such repayment may also be made by crediting the amount of such deposit to the account (if any) with such company or bank of the person to whom such deposit has to be repaid: Provided further that nothing in this sub-section shall apply....
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....section 271C, section 271D, section 271E, clause (c) or clause (d) of sub-section (1) or sub-section (2) of section 272A, sub-section (1) of section 272AA or sub-section (1) of section 272BB 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 269T of the Act provides for mode of repayment of certain deposits. It stipulates that no company including a banking company, cooperative society or firm shall repay to any person any deposit made with it otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who had made the deposit if the amount of deposit together with interest is Rs. 20,000 or more. Section 271E is included in Chapter XXI of the Act which deals with penalties imposable for failure to comply with the provisions of section 269T of the Act and it speaks of levy of penalty equal to the amount of the deposit so repaid in contravention of section 269T of the Act. Section 273B of th....