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TMI Blog2023 (3) TMI 1303X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A). Appeal of the assessee is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act to the appellant levied penalty u/s 271D of the Rs. 15,60,000/- vide order dated 11.08.2016. 4. Aggrieved by the penalty order, the assessee has filed appeal before the ld. CIT(A). 5. Before the ld. CIT(A), the assessee furnished written submission which is under:- * In this regard we submit that our client was in urgent need of funds for making the payment of the salaries for the month of May, 2012 which was already delayed and "M/s. Centre For Vocational and Entrepreneurship Studies" (IIP) was having cash only with its for giving loan out of fee collected by them in cash from the students. * Since our client has to make the payment of salary on urgent basis for continuing the operations and it was not having any other option ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned cash loan prima facie is not an acceptable explanation as the said cash is not disbursed by the appellant directly as salary but is deposited in its bank account and then transferred to another bank account from which the alleged urgent salary payment is made. In my view, the explanation offered cannot be treated as a reasonable cause for acceptance of the loan in cash in contravention of the provisions of section 269SS of the Act. It is not a solitary transaction, as the appellant has regular banking transaction with M/s. CVES during the year as is evident from the ledger account of M/s. CVES and NEFT is done routinely. Nothing has been brought on record to highlight the alleged urgency of salary payment, the ostensible reason fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or accept from any other person (hereafter in this section referred to as the depositor), any loan or deposit otherwise than by an account payee cheque or account payee bank draft if,-- (a) the amount of such loan or deposit or the aggregate amount of such loan and deposit ; or (b) on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid ; or (c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is [twenty] thousand rupees or more : Provided that the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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