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TMI Blog2018 (4) TMI 1783X X X X Extracts X X X X X X X X Extracts X X X X ..... the business operations at Jaipur and there is no malafide intention and the said transaction was disclosed in the income tax returns. Whereas the ld. DR submitted that the assessee has violated the provisions by accepting the cash loan. Further the ld. AR emphasized that the assessee has no intention to violate the provisions and has a reasonable cause in accepting the cash as the business transaction performed at Jaipur to be on cash to cash basis. Considering business activity of the assessee and we find strength in the arguments of ld. AR on genuineness of transaction and circumstances of the case. Accordingly, we set aside the order of the CIT(A) and delete the addition and the grounds of appeal of the assessee are allowed. - ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... har Nayak, it was the contention of the assessee that he is an agriculturist, he is unmarried, and stays with his mother, his mother has land of 2.86 acres from which two yields of paddy is cultivated and that he gets 1.55 lakhs per year from landed property. It was further contended that Dambarudhar Nayak gave ₹ 4,50,000/- in cash to the assessee out of above income. The AO observed that if Dambarudhar Nayak is holding landed property, conducts agricultural operations then he is capable of having a bank account and further noted that no evidence has been brought on record regarding assets and liabilities of Dambarudhar Nayak and filing of return of income. Finally, the AO concluded that there was intention of tax evasion on the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded opportunities and the assessee has not given reasonable cause for accepting cash loan of ₹ 7.5 lakh. Therefore, the ld. DR prayed for dismissal of the appeal of the assessee. 7. We have heard rival submissions of both the parties and perused the materials on record. The sole dispute is with respect to for violation of provisions of Section 269SS of the Act. Ld. AR s contention that the assessee has not evaded any tax and Sachidananda Nayak and Dambarudhar Nayak, from whom the assessee has accepted the cash loans, have disclosed the transaction in their accounts. The ld. AR further emphasized that the statements were recorded from the persons in respect of cash loan of ₹ 7.5 lakhs from the above persons. Further a le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able cause for any failure, no penalty shall be imposable on the person or the assessee as provided under s. 271D. Both the fact-finding authorities found that the transaction in question is a genuine transaction and the explanation given by the respondent-assessee has been accepted by the CIT(A) as well as by the Tribunal. Court cannot go into the aspect whether the finding of fact arrived at by the authorities below is proper or not. It is required to be noted that the powers of the Court are limited as to correct substantial error of law, if any. Whether a particular transaction is genuine or otherwise is a question of fact and if it has been found by the appellate authority that the assessee had shown reasonable cause for accepting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er s. 273B if the Court finds that there was a reasonable and sufficient cause for not imposing the penalty on the assessee in the given facts and circumstances of the case the penalty shall not be levied. The transaction of loan has found place in the books of account of the assessee as well as the lender of the loan. None of the authorities have reached to the conclusion that the transaction of the loan was not genuine and it was a sham transaction to cover up the unaccounted money. It appears that the assessee felt need of money and thus he approached the money-lender for advancement of the money, the transaction is reflected in the promissory notes executed by the assessee in favour of the lender. When there is an immediate need of mone ..... X X X X Extracts X X X X X X X X Extracts X X X X
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