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TMI Blog2012 (5) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... ng or accepting any loan or deposit in excess of Rs. 20,000 otherwise than by an account payee cheque or bank draft – in favour of assessee. - IT Appeal No. 131 (Kol.) of 2012 - - - Dated:- 7-5-2012 - MAHAVIR SINGH, C.D. RAO, JJ. ORDER Mahavir Singh, Judicial Member This appeal by assessee is arising out of order of CIT(A)-XXXVI, Kolkata in Appeal No. 718/CIT(A)-XXXVI/Kol/Wd.-1,Nadia/09-10 dated 02.09.2011. Assessment was framed by ITO, Ward-49(3), Kolkata u/s. 143(3)/254 of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for Assessment Year 2002-03 vide his order dated 28.12.2007. Penalty in dispute was imposed by Addl. CIT, Range-49, Kolkata u/s. 271D of the Act vide his order dated 19.09.2008. 2. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. Hence, he imposed the penalty u/s. 271D of the Act. Aggrieved, assessee preferred appeal before CIT(A), who upheld the action of Addl. CIT. Being further aggrieved, assessee is now in appeal before us. 4. We have heard rival submissions and gone through facts and circumstances of the case. Before us Ld. Counsel for the assessee admitted the fact that the assessee had received a sum of Rs. 20,000/- from each of six creditors totaling to Rs. 1,20,000/- in cash. The reasonable cause for receipt of this cash loan was that the assessee was to purchase a car and he has received cash loan from relatives, who are neither income tax assessee nor having any bank account. Hence, he has no other alternative except to receive loans in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and persons employed in the execution of the Act under s. 5(8) of the Act." Navnit Lal ( supra ) was followed in Ellerman Lines Ltd. v. CIT 1972 CTR (SC) 71 : [1971] 82 ITR 913 (SC). In UCO Bank v. CIT [1999] 154 CTR (SC) 88: [1999] 237 1TR 889 (SC), the law was restated and it was held that circular of CBDT are legally binding on the Revenue and this binding character attaches to the circulars even if they be found not in accordance with the correct interpretation of the section and they depart or deviate from such construction, when they are issued in exercise of the statutory powers under s. 119. It was however clarified that the Board cannot pre-empt a judicial interpretation of the scope and ambit of the provision and further ..... X X X X Extracts X X X X X X X X Extracts X X X X
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