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TMI Blog2012 (5) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... ovisions if he proves that there was reasonable cause for the said failure - from the materials brought on record it is clear that four persons were agriculturists from whom various deposits in cash were accepted amounting to Rs. 10,000/- or lesser amount and came to the conclusion that those agriculturists had no bank account and the amounts were paid in cash – in favour of assessee. - INCOME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of the CIT (Appeals), appeal was filed by the assessee before the Tribunal. The Tribunal has allowed the appeal of the assessee and set aside the order of penalty under Section 271 D and 271 E of the Act. Shri Shambhu Chopra, learned counsel for the appellants pressed the appeal on following grounds:- "1- BECAUSE the assessee accepted deposits in cash in contravention of the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be set aside." We have considered the submissions of learned counsel for the appellants and perused the record. The Tribunal has given reasons in paragraph 5 for setting aside the penalty imposed under Section 271-D to 271- E of the Act. It is useful to refer to the reasons given by the Tribunal in Paragraph 5 which are as follows:- "5. After considering rival submissions and perusing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the considered view that this is a fit case where provisions of Section 273-B can be made applicable becasuse all the four persons were villagers who were not having any bank account, therefore, there was a reasonable causse in accepting the amount in cash and repaying the amount in cash. The observation of the AO as also of CIT(A) that that if there was no bank account then the amount can be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty shall be imposable on the persons or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure. The Tribunal having found reasonable cause for non compliance of the provision by relation which was alleged, was fully justified in invoking Section 273-B of the Act and holding that penalty was not i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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