2018 (9) TMI 1616

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....2. 2. Brief facts are, the assessee a company is engaged in the business of development of real estate. During the assessment proceedings for the impugned assessment year, the Assessing Officer noticing that in the relevant previous year the assessee has received in cash Rs. 1,00,000 towards share capital and Rs. 3,60,500 towards loan observed that the assessee has violated the provisions of section 269SS of the Income Tax Act, 1961 (for short "the Act"). Accordingly, he recommended initiation of penalty proceedings under section 271D of the Act. In response to the show cause notice, though, the assessee submitted that the default in accepting the cash loan in violation of section 269SS of the Act is for a reasonable cause, however, the ....

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....d. In this context, he drew our attention to the copy of the bank account placed at Page-18 of the paper book. He also drew our attention to the copy of the sale deed. Thus, it was submitted that the default committed by the assessee by availing the cash loan was due to reasonable cause, hence, no penalty should be imposed. 5. The learned Departmental Representative strongly relying upon the observations of the learned Commissioner (Appeals) submitted that the assessee having violated the provisions of section 269SS of the Act, imposition of penalty is justified. 6. We have considered rival submissions and perused materials on record. There is no dispute to the fact that the assessee has availed cash loan of Rs. 3,60,340, from two of ....