Case Law Details
Deepak Sales & Properties Pvt. Ltd Vs ACIT (ITAT Mumbai)
There is no dispute between the parties that bonafide nature of transactions alone would not be sufficient to escape the clutches of sec. 271D of the Act. As per the decision rendered by Hon’ble Supreme Court in the case of Kum. A.B. Shanthi (supra), it is required to be established that there was some bonafide reasons for the assessee for not taking or accepting loan or deposit by account payee cheque or account payee bank draft, so that the provisions of sec.273B of the Act will come to the help of the assessee. Only in such cases, the AO is precluded from levying penalty u/s 271D of the Act. The Ld A.R took support of Explanatory note given while introducing the provisions of sec. 269SS of the Act. However, the Hon’ble Supreme Court has rendered its decision in the case of Kum. A.B.Shanthi (supra) after considering the same and has expressed the view extracted above. In the case of Triump International Finance (I) Ltd (supra) also, the Hon’ble Bombay High Court has deleted the penalty only on the ground of existence of reasonable cause.
As assessee has failed to show that there was a reasonable cause for getting loans in violation of the provisions of sec. 269SS of the Act.
FULL TEXT OF THE ITAT JUDGMENT
The assessee has filed this appeal challenging the order dated 01-08- 2012 passed by Ld CIT(A)-19, Mumbai confirming penalty of Rs.2.00 lakhs levied by the Additional Commissioner of Income tax u/s 271D of the Act for violation of provisions of sec. 269SS of the Act during the year relevant to the assessment year 2008-09. Thus, the solitary issue urged in the appeal related to the imposition of penalty u/s. 271D of the Act.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
