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[2007] 294 ITR 131 (RAJ.) HIGH COURT OF RAJASTHAN Commissioner of Income-tax v. Raj Kumar Sharma R.M. LODHA AND R.S. CHAUHAN, JJ. D.B.I.T. APPEAL NO. 118 OF 2006 APRIL 30, 2007 Section 271D of the Income-tax Act, 1961 - Penalty - For failure to comply with section 269T â–  Where Tribunal was of view that there was a reasonable cause to accept deposit otherwise than through bank draft or through cheque because assessee bona fide believed that cash transactions below Rs. 20,000 were permissible and, in fact, none of transaction had exceeded Rs. 20,000, deletion of penalty by Tribunal was justified Penalty was imposed on the assessee under section 271D for accepting deposit in excess of the prescribed limit, during the financial year 2000-01, on different dates from his brother, totalling Rs. 90,000. The Tribunal, in its order, had found that the genuineness of the deposits made by the assessee's was not in doubt. The Tribunal noticed the explanation given by the assessee that the deposits were obtained by him to satisfy the immediate business requirement but found that that had not been established. However, the Tribunal was of the view that there was a reasonable cause to accept the deposit otherwise that through bank draft or through cheques because the assessee bona fide believed that the cash transactions below Rs. 20,000 were permissible. The Tribunal, therefore, deleted the penalty. Held that none of the transactions exceeded Rs. 20,000. The Tribunal accepted that the assessee bona fide belief that the cash transactions below Rs. 20,000 were permissible and the cause shown by the assessee constituted reasonable cause. The finding of the Tribunal could not be said to be grossly perverse or unsustainable in law. Thus, no substantial question of law arose from the Tribunal's order deleting penalty. JUDGMENT We heard Ms. Parinitoo Jain for the Revenue and Mr. P. K. Kasliwal counsel for the assessee. That the assessee acted in contravention of the provisions of section 269SS of the Income-tax Act, 1961, by accepting a loan of Rs. 90,000 in cash in the year from April 1, 2000, to March 31, 2001, on different dates from his brother Pankaj Sharma is not in…

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