Penalty proceedings can’t be initiated when there is reasonable cause of not complying with section 269S

Facts of the Case

The assessee is an individual deriving income from house property and agriculture. The assessment was completed u/s 143(3) of the I.T. Act on 12.3.2013. During the course of the assessment proceedings, it was noticed that the assessee had received a loan of Rs.30.00 lakhs in cash on 10.05.2009 thereby violating the provisions of section 269S of the I.T. Act. Accordingly, penalty notice u/s 271D of the I.T. Act was issued to the assessee on 25.04.2013 which was duly served on the assessee.
Question of Law

Whether the ld. CIT(A) was justified in imposing the penalty in violation of section 269ss when there was a reasonable cause?

Contentions of the Assessee

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