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ORDER Ms. Sonia Gokani, J. - Aggrieved by the order of the Income Tax Appellate Tribunal, Ahmedabad ["Tribunal" for short] dated 23rd August 2013, Revenue has challenged the same in the present Tax Appeal preferred under Section 260A of the Income-tax Act, 1961 ("the Act" for short), raising following two questions for our consideration :- '(A) "Whether in the facts and circumstances of the case, the ITAT has erred in law in rejecting the Revenue's appeal against the decision of CIT (A) in dealing the penalty levied u/s. 271D of the Income-tax Act, even though the assessee is not covered by the exception to Section 269SS of the Act provided in second proviso to the said Section 269SS, as the assessee had taxable income under the Act and accepted cash exceeding the limit provided under the said Section 269SS ?" (B) "Whether 'genuineness of the loan/deposit' or 'bona fide nature of the loan/deposit transaction' is the criteria for examining the contravention of the provisions of Section 269SS of the Income Tax Act, 1961 for levying penalty u/s. 271D of the Income Tax Act, 1961 ?"' 2. The assessee firm is engaged in the business of civil construction. For the A.Y 2006-07, assessee filed return of income declaring the total income at Rs. 4.76 lakhs [rounded off]. Revised return thereafter was filed, which was processed and the case of the assessee was selected for scrutiny. It was noticed by the Assessing Officer that assessee had accepted an amount of Rs. 42.75 lakhs by way of cash loan from ten different persons. The assessee was required to furnish confirmation from those parties, which all was provided in writing. It was, however, noticed that the amount had been received in cash from those persons in violation of provisions of Section 269SS of the Act, and therefore, penalty proceedings under Section 271D had been initiated. 3. The Assessing Officer levied the penalty for having found breach of Section 269SS of the Act. He also noted that even if the persons advancing the loan were agriculturists, the assessee was assessable under the Income Tax Act and Section 269SS would not permit him to take recourse to taking the amount in cash and penalty was a must. 4.…

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