Mr. Girishkumar Popatlal Vs JCIT (ITAT Ahmedabad)
During the course of the scrutiny assessment proceedings, the A.O. noticed that the assessee has accepted amount of Rs. 1.55 lacs from Shri Bhadresh Girishbhai Patel and Rs. 37,000/- from Shri Bhupendrabhai Poptlal Shah in cash which is in violation of the provisions of Section 269SS of the Act. The A.O. further noticed that the assessee has also made cash repayment of Rs. 1.04 lacs to Bhadresh Patel and accordingly violated the provisions of section 269T of the Act. The A.O. initiated penal proceedings u/s. 271D and 271E of the Act for the alleged violation and levied penalty of Rs. 1,92,000/- u/s. 271D of the Act and Rs. 1,04,000/- u/s. 271E of the Act.
Ld. counsel for the assessee stated that therefore Shri Bhupendrabhai Patel is the brother of the assessee and Shri Bhadresh Patel is the father of the assessee. It is the say of the ld. counsel that the assessee is in the business of retailed trade and therefore whenever there is an urgent need of money, the same is taken from the brother and the father. The ld. counsel vehemently stated that the legislative intent in prohibiting the acceptance and repayment of money in cash over and above Rs. 20,000/- is to check the unaccounted money and not to hit the genuine business need.
