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TMI Blog2016 (8) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... overed by the exceptions provided in the section 273B of the Act. There existed the a reasonable cause for accepting cash in loan in the month of July, 2007. So, reversing the order of the FAA, we decide the effective ground of appeal in favour of the assessee. - ITA/2154/Mum/2013 - - - Dated:- 12-8-2016 - Shri Rajendra, Accountant Member and C. N. Prasad, Judicial Member Revenue by : Shri N. Sathya Moorthy-DR Assessee by : Shri Atul Mehta ORDER Per Rajendra, AM Challenging the order dated 03. 01. 2013 of the CIT(A)-8, Mumbai, the assessee has filed the present appeal for the above mentioned assessment year. Assessee is engaged in renting out of various commercial properties. The Return of income was processed on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 07-11-2011 and argued that the assessee was forced to take cash loan of ₹ 85, 000/- from the HUF to tide over the financial crisis to safeguard its credit rating, that the transaction was between the share -holder and the company, that while carrying out the transaction the accountant was unaware of the provisions of section 269SS. However. the AO did not accept the submission made by the assessee and held that it had clearly contravened the provisions of section 269SS of the Act, that ignorance of law was not an excuse for contravening the provisions of the section, that the credit -worthiness of the assessee was not at stake. Finally, he held that the assessee had contravened the provisions of section 269SS. He levied a penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, that it could not take the advantage of the circumstances which were of its own creation. Finally, he upheld the penalty levied by the AO. 4. During the course of hearing before us, the Authorised Representative(AR) argued that loan was taken from shareholder due to compelling circumstances, that it was a solitary transaction, that it was not aware that certain provisions of law would be violated if loans were accepted in cash from a shareholder, the loan transactions had been accepted as genuine by the AO, that there was no allegation that the assessee had circulated unexplained money in the form of loan, that penalty should not be levied only on the ground that the AO was authorised to levy the same, the default was technical in na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 273B for non-imposition of penalty under section 271E would have to be construed liberally depending upon the facts of each case. As held by the Hon ble Court, reasonable cause has to be decided in each and every case. Considering the peculiar facts of that matter. In the case under appeal the assessee had taken loan from one of its share holder and that share holder had withdrawn the money from its bank account. Thus, there was no introduction of cash on part of the shareholder. The assessee had to make the EMI payment and for that purpose it had taken a cash loan. In our opinion, it can be considered a reasonable cause looking in to the facts and circumstances. Section 269SS were introduced with specific purpose. The transa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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