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TMI Blog2017 (1) TMI 1522X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion in cash were accepted by him in cash due to business exigencies and there were compelling circumstances to accept the said loans in contravention of section 269SS. Assessee is found to have failed to establish any reasonable cause on evidence for accepting the loans in question in cash in violation of section 269SS. - Decided against assessee. - I.T.A. No. 1788/Kol/2014 - - - Dated:- 19-1-2017 - Shri P.M. Jagtap, AM And Shri S.S. Viswanethra Ravi, JM For The Assessee : Shri V. N. Datta, Advocate For The Revenue : Shri Arindam Bhattacharjee, Addl. CIT ORDER This appeal filed by the assessee is directed against the order of Ld. CIT (Appeals) 33, Kolkata dated 09.06.2014 whereby he confirmed the penalty o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccept the cash loans in compelling circumstances. These contentions of the assessee were not found acceptable by the Ld. CIT(A) and he proceeded to confirm the penalty imposed by the A.O. under section 271D for the following reasons given in paragraph no 4.1 of his impugned order: It is undisputed that the appellant had accepted cash loans of ₹ 90,000/-, ₹ 90,000/- and ₹ 1,00,000/- from Shri Dipak Chakraborty, Shri Mahadeb Das and Shri Janardan Pal respectively. The appellant's contention is that the loans had been taken in small amounts over the period of time. However, such small loans are also covered under the provisions of clause (c) of section 269SS of the Act which lays down that acceptance of cash loan o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of section 269SS of the Act. The appellant is also not covered under any of the exceptions provided under section 269SS. I, therefore, hold that the Joint Commissioner of Income-tax, Range - 53, Kolkata was right in imposing penalty of ₹ 2,80,000/- under section 27lD of the Act. The penalty of ₹ 2,80,000/- is confirmed. Aggrieved by the order of the Ld. CIT(A), the assessee has preferred this appeal before the Tribunal. 4. The learned counsel for the assessee contended that there were business exigencies and the assessee, therefore, had to accept the loans in question in cash under compelling circumstances. In support of this contention, he invited our attention to the relevant copy of the bank statement of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cash. He contended that the assessee was thus in a position to take the loans in question by cheques and issue the cheques for payments after clearance of the said cheques. He contended that the relevant entries in the bank account of the assessee even otherwise are not sufficient to establish any business exigencies. As regards the case laws cited by the Ld. CIT(A) in support of the assessee s case, he contended that the reasonable cause for accepting the loans in cash was duly establish by the assessee in the said case. 6. We have heard the arguments of both the sides and also perused the relevant material on record. It is observed that the explanation offered by the assessee before the authorities below that the loans in question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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