Law:

Section:

Section 271D of the Income-tax Act, 1961 - Penalty - For failure to comply with section 269SS - In respect of loans availed by assessee in contravention of provisions of section 269SS, commissioner levied penalty under section 271D on ground that assessee had no reasonable cause for borrowing amount in cash - Case of assessee was that family members of assessee wanted their money to be kept in safe custody and to use it as and when required for business of assessee - Tribunal deleted said penalty and held that merely for reason that after amounts were received, assessee did not utilize same, it would not go to show that there was no business requirement for assessee - Whether no substantial question of law arose out of order of Tribunal - Held, yes FACTS The assessee had taken loans from one 'S' and 'C'. The Joint Commissioner found that the loans were availed of by the assessee in contravention of the provisions of section 269SS. He, thus, issued a notice to the assessee to show cause as to why penalty under section 271D should not be levied and after finding that the assessee had no reasonable cause for borrowing the amount in cash, he levied penalty under section 271D. The Commissioner (Appeals) confirmed the penalty order. On appeal, the Tribunal, holding that the assessee had reasonable cause to borrow loans, quashed the penalty. On appeal : HELD The Tribunal had considered the case of the assessee that the family members of the assessee wanted their money to be kept in safe custody and to use it as and when required for the business of the assessee and the assessee received the money on a sunday. The Tribunal had held that merely for the reason that after the amounts were received, the assessee did not utilize the same, it would not go to show that there was no business requirement for the assessee. Therefore, on the facts and circumstances of the case, the Tribunal had rightly come to the conclusion that the penalty imposed was not warranted and accordingly, allowed the appeals. There was no reason to interfere with the finding of fact arrived at by the Tribunal. [Para 3] No substantial question of law arose out of the order of the Tribunal as the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492