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TMI Blog2020 (6) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the first appellate authority, the Commissioner of Income Tax (Appeals), dated 9.7.2018. Revenue is the respondent in the appeal. 2.The appellant is a society constituted in the year 1951, which is a company registered under Section 25 of the Companies Act, 1956, corresponding to Section 8 of the Companies Act, 2013. While finalising the assessment of income tax of the appellant with respect to the year 2005-2006, the Assessing Officer found that, during the previous year relevant to the assessment year concerned, the assessee had conducted finance business by violating the provisions contained in Section 269SS of the Income Tax Act by accepting deposits in cash from various clients, exceeding the sum of Rs. 20,000/-. On the recom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... put forth as an excuse. It is further found that the contention put forth to the effect that the appellant had no motive to violate the law, will not in any manner help the assessee to escape from the penal provisions. Therefore penalty to the tune of Rs. 4,74,46,248/- was imposed under Section 271D. 3.The appellant was unsuccessful in the first appeal filed before the CIT (Appeals). They were equally unsuccessful before the Appellate Tribunal in the first round of second appeal, which was disposed of through Annexure F order dated 31st July 2013. In an Income Tax Appeal filed challenging the said order before this court, in ITA No.19/2014, the matter was remanded for fresh consideration by the Assessing Officer. Before this court it was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blish such 'reasonable cause' in a convincing manner. However, the matter was remitted back by this court to the Assessing Officer for fresh consideration, mainly on the basis that it has to be re-checked as to whether all the transactions are with respect to amounts above Rs. 20,000/-. Incidentally it was observed that even though there is no specific consistent stand with respect to the reasonable cause, since the matter is remitted back, no prejudice would be caused to the revenue if an opportunity is given to the assessee to explain such transactions. Therefore the officer was directed to accept the explanation if any offered by the assessee. 4.After remand of the matter, the original authority had considered the issue afresh. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here exists no 'reasonable cause' as mandated under Section 273B of the Act. Accordingly the second appeal was also dismissed. 5.Heard Sri.T.M.Sreedharan, learned Senior Counsel appearing for the appellant as well as Sri.P.K.Raveendranatha Menon, Senior Standing Counsel for Government of India (Taxes) appearing for the Revenue. 6.We take note of the fact that, in Listin Stephen's case (supra), after referring to a catena of decisions like the Commissioner of Income Tax v. P.K.Shamsudin [2011(1) KLT online 1211], K.V.George v. Commissioner of Income Tax (supra), Assistant Director of Inspection (Investigation) v. Kumari A.B.Santhi [2002 (2) KLT Online 1007 (SC)], NSS Karayogam v. Commissioner of Income Tax [2014(2) KLT Online 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a company doing finance business of money lending and receiving deposits. 8.Lastly, learned Senior Counsel for the appellant has raised a contention that the assessee will fall within the exempted category of banking company contained under the 1st proviso to Section 269SS. There is nothing to indicate that the assessee has got any registration as a banking company, as defined under the Banking Regulation Act or not even to the effect that the appellant is a 'non-banking financing company' having authorisation from the Reserve Bank of India. Therefore the said contention also cannot be accepted. 9. It is evident from the Annexure attached to the revised order of the original authority, dated 27.6.2014 that, all the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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