TaxTMI 
TaxTMI 
2023 (8) TMI 1066
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....facts and in the circumstances of the case learned Addl. Commissioner of Income Tax and CIT(A), Udaipur erred in facts as well as in law confirming the penalty u/s. 271E of Rs. 3,90,000/- on the assessee firm without considering the item of payment and assumed payment made to HUF (Arun Kumar Gandhi) as repayment of loan. 02. Learned CIT(A) erred in not holding that it was mutual, open and current account between assessee's firm and partner's HUF was not at all account of loan. 03. Learned CIT(A) erred in not accepting the fact that there was reasonable and bonafide cause u/s. 273B of the Act for entering into this transaction payment Rs. 3,90,000/- on 30.04.2010 for purchase of land. 04. Learned CIT(A) erred in not accepting t....
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....purchase deed dated 30.04.2010 to demonstrate that HUF has purchased land. Ld. AR explained that for the said purchase, there was immediate requirement of the money and hence assessee give Rs. 3,90,000/- to HUF in cash. Ld. AR explained that there was a reasonable cause for cash transaction. Ld. AR also explained that there was no intention of tax evasion, as all the transactions are reflected in the account. Submission of Ld. DR 3. Ld. DR relied on the order of the lower authorities. Findings & Analysis 4. We have heard both the parties and perused the records. 5. The only issue for our consideration penalty under section 271E of the Act. The assessee has given Rs. 3,90,000/- in cash to Arun Kumar Gandhi (HUF). The Assessing Officer w....
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....amount of loan or deposit so taken or accepted in ontravention of the provisions of section 269SS. A plain reading of section 271D gives an impression that if there is a contravention of the provisions of section 269SS, the assessee shall be liable to pay the penalty equal to the amount which has been taken as loan or deposit and there is no discretion left with the assessing authority to waive the penalty considering the facts and circumstances in which the loan or deposit was taken by the assessee. But when we read section 271D with section 273B of the Act of 1961 which begins with non obstante clause "Notwithstanding anything contained in the provisions of section 271D", it is clear that in spite of the provision of section 271D, the ena....