Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For Concealment of income Where assessee-firm had accepted deposits in cash exceeding prescribed limits from public for purpose of business in real estate and property development carried on by related concerns and, on facts of given case, it was not in dispute that except for pleading that assessee-firms had accepted deposit only for business exigencies, there was no material to show reasonable cause for such exigencies, penalty imposed on assessee was justified [Assessment years 1996-97 and 1997-98] [In favour of revenue] Kasi Consultant Corpn. v. Dy. CIT [2009] 311 ITR 419 (Mad.) The assessee-firm had accepted deposits in cash exceeding prescribed limits from the public for the purpose of business in real estate and property development carried on by related concerns. As there was a contravention of the provisions of section 269T by the firm in accepting the deposits from the public penalty was levied on it under section 271D. Held that on the facts of the given case, it was not in dispute that except for pleading that the assessee-firms had accepted the deposits only for business exigencies, there was no material to show the reasonable cause for such exigencies and the assessee had also not demonstrated the shortage of cash in the business, which made the assessees to accept the cash. As the assessee had miserably failed even before the Assessing Officer on the very first instance to adduce such documents and had failed to invoke an order from the Tribunal, imposition of penalty on the assessee was justified. J. Balachander for the Appellant. T. Ravikumar for the Respondent. JUDGMENT D. Murugesan, J. - All these appeals are admitted on the following substantial questions of law : "(i) Whether the Tribunal is correct in confirming the order imposing penalty under section 271D of the Act on the facts and in the circumstances of the case ? (ii) Whether the Tribunal is correct in concluding that there was reasonable cause for accepting deposits in cash exceeding Rs. 20,000 with reference to the provisions of section 273B of the Act ? (iii) Whether the Tribunal is correct in not considering the scope and…

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