Case Law Details
Narendrakumar Chunilal Soni Vs Joint Commissioner of Income Tax Range (ITAT Ahmedabad)
ITAT Ahmedabad held that penalty under section 271D of the income Tax Act not leviable as reasonable cause for violation of provisions of section 269SS duly demonstrated.
Facts- The assessee is an individual engaged in the business of repairing gold/silver ornaments. The assessee’s case was selected for scrutiny assessment since cash deposits were made during the demonetization period. The assessee was asked to furnish the source of the cash deposit along with documentary evidence and a copy of the bank statements. The assessee replied that the cash deposit is out of his sale proceeds of residential flats and his income from repairing gold/silver ornaments.
Post investigation, AO completed the assessment accepting the returned income as the assessed income.
Thereafter, the assessee was issued a notice u/s. 274 read with section 271D calling for an explanation on the cash transaction in connection with the violation of Section 269SS of the Act. However, the explanation offered by the assessee was not accepted as satisfactory, therefore the Joint Commissioner levied a penalty u/s. 271D of Rs. 7,93,000/-.
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