No Penalty for cash loan accepted out of business exigencies

It was observed by the Tribunal that ‘in the instant case the undisclosed income as declared in the block return remained the assessed income. The Revenue did not doubt the veracity of the creditors. The AO did accept the credits as genuine. Most of the creditors were agriculturists, residing in remote villages and many of them did not have any bank account. The assessee was not professionally managed. From this it could be concluded that the breach flowered from a bona fide belief. Ex facie it was a venial breach. Cash was accepted because of business exigencies. As such, there existed reas...