Case Law Details
Monarch Dyestuff Industries And Exports Ltd. Vs JCIT (ITAT Ahemdabad)
Conclusion: Assessee was not liable for penalty under section 271D and 271E for availing cash loans/deposits in violation of section 269SS and 269T as it had availed the facility in order to re-establish itself, and for fulfilment of promises given for the purpose of BIFR which was a reasonable cause foe not levying penalty.
Held: Assessee had obtained loan/deposits in cash and repaid alleged loan/deposits in cash, thus, violated provisions of section 269SS and 269T. AO had imposed penalty under section 271D and 271E. It was held no doubt breach was there, but assessee had a plausible explanation. It had been in the business since 1980 in exporting dyes and intermediaries. Thus, in order to re-establish itself, it had availed certain cash loans which had been used for fulfilment of promises given for the purpose of BIFR. therefore, assessee had been able to demonstrate reasonable cause for not visiting the penalty under section 271D and 271E.
FULL TEXT OF THE ITAT JUDGEMENT
Present two appeals are directed at the instance of the assessee against separate orders of the ld.CIT(A) dated 6.11.2015 passed for the Asstt. Year 2009-10.
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