2023 (3) TMI 1303

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.... 2. On the facts and .circumstances of the case the learned CIT(A) as erred both on facts and in law in confirming the penalty amounting to Rs. 15,60,000/- levied by the Addl. CIT u/s 271D of the Act. 3. On the facts and circumstances of the case the learned CIT(A) has erred both on facts and in law in confirming the penalty of Rs. 15,60,000/- being loan received in cash by treating the same as contravention of provisions of Section 269SS. 4. On the facts and circumstances of the case the learned CIT(A) has erred both on facts and in law in confirming the penalty rejecting the contention of the assessee that the transaction being genuine in nature as the payer and the payee were known and the transaction is properly ....

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....udies" (IIP) was having cash only with its for giving loan out of fee collected by them in cash from the students. • Since our client has to make the payment of salary on urgent basis for continuing the operations and it was not having any other option but to take loan whether it is in cash or otherwise. The payer was having only cash with it, therefore, out client had to accept the loan in cash. • The transactions reported above are genuine as these were recorded in the books of the payee and payer. These transactions have not resulted into any loss to the revenue. The documentary evidences are attached. 6. After considering the submissions of the assessee, the ld. CIT(A) affirmed the order signed by Sh. Sarabj....

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....y transaction, as the appellant has regular banking transaction with M/s. CVES during the year as is evident from the ledger account of M/s. CVES and NEFT is done routinely. Nothing has been brought on record to highlight the alleged urgency of salary payment, the ostensible reason for accepting the loan in cash. Therefore, the explanation that the said loan is taken in cash to tide over urgent requirement of salary payment is without any basis. The ration of case laws relied upon by the ld. AR do not apply to the facts of the case and are distinguished. 3.3 On consideration of the factual matrix and circumstances of the case, I am of the considered view that the appellant's facts does not constitute reasonable cause and there is n....

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....m the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate 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 cooperative bank ; (c) any corporation established by a Central, State or Provincial Act ; (d) any Government company as defined in section 617 of the Compan....