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TMI Blog2023 (8) TMI 1066X X X X Extracts X X X X X X X X Extracts X X X X ..... rchased agricultural land. Therefore, respectfully following case of MANOJ LALWANI. [ 2002 (3) TMI 6 - RAJASTHAN HIGH COURT] , since there was reasonable cause, we direct the AO to delete the penalty. Accordingly, the appeal of the assessee is allowed. - Shri Pavan Kumar Gadale, Judicial Member And Dr. Dipak P. Ripote, Accountant Member For the Assessee : Sh. Arun Padliya and Shri Abhinav Jaion, CAs For the Revenue : Ms. Nidhi Nair, JCIT-DR ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the Assessee directed against the order of ld. Commissioner of Income Tax (Appeals)-1, Udaipur dated 28th June, 2018 emanating from the penalty order under section 271E of the Act for assessment year 2011-12. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee firm. Ld. AR invited our attention to the ledger account of M/s Arun Kumar Gandhi (HUF) in the books of the assessee firm which was at page no. 5 of the paper book. Ld. AR explained that on 30.04.2010, assessee firm gave Rs. 3,90,000/- in cash to Arun Kumar Motilal Gandhi (HUF). This cash was given as the HUF wanted to purchase land and there was no sufficient time for banking transaction as 27.03.2010 was a holiday on account of Mahaveer Jayanti, the other three days being the last day of the financial year were rush hours for the bank. Ld. AR, therefore, explained that it was not possible to issue cheque and then enter into the transaction of land purchase. Ld. AR explained that this fact was submitted before Ld. CIT(A). He invit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had purchased an agricultural land on 30.04.2010 situated at Pratapgarh, Rajasthan. Copy of the registered sale deed was filed by the assessee during the proceedings. The land was purchased in rural area. There was public holiday on 28th March. Banks were over worked being end of financial year. Therefore, in our opinion, there was reasonable cause for cash payment to HUF. 8. The Hon'ble Rajasthan High Court in the case of Commissioner of Income tax vs. Manoj Lalwani 260 ITR 590 (Rajasthan) has held as under:- 4. As per section 269SS of the Act of 1961 after 30th day of June, 1984 no person is allowed to take or accept from any other person any loan or deposit otherwise than by account payee cheque or account payee bank draft, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... draft, if the assessee or the person proves before the assessing authority that there was a reasonable cause for not accepting the amount of loan or deposit by way of account payee cheque or account payee bank draft. Under section 273B a judicial discretion is left with the assessing authority not to levy a penalty under section 271D if the authority is satisfied that there was a reasonable cause for not complying with the provisions of section 269SS of the Act of 1961. 5. In the present case the Tribunal has found that the assessee is an exporter and was in urgent need of the money for complying with the time bound supplies and, therefore, he took a loan of Rs. 2,50,000 (Rs. two lac fifty thousand) from his brother-in-law Mukesh Manw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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