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TMI Blog2023 (9) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... nt or any other prescribed electronic mode as provided in Rule 6ABBA of the I.T. Rules, 1962. We are unable to persuade ourselves to subscribe to the explanation of the assessee that as the financers were not ready to receive the repayment of loans from her vide account payee cheques, therefore, for the said reason, she was compelled to make the said payments in cash. We do not find any substance in the assessee's claim that she was unaware of the provisions of section 269T of the Act. It is a matter of fact borne from the record that the assessee was availing the services of a Chartered Accountant and had got her accounts for the year under consideration audited from him. Assessee cannot be allowed to plead ignorance of the law, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 25.10.2022 which in turn arises from the order passed by the JCIT, Range-3, Raipur u/s. 271E of the Income-tax Act, 1961 (for short Act ), dated 28.12.2018 for A.Ys. 2012-13, 2013-14 2015-16. As common issues are involved in the appeals mentioned above, the same are being taken up and disposed of together by way of a consolidated order. 2. We shall take up the appeal in ITA No.251/RPR/2022 for the assessment year 2012-13 as the lead matter, and the order therein passed shall apply mutatis-mutandis to the remaining cases. The assessee has assailed the impugned order of the CIT(Appeals) on the following grounds of appeal: 1. On the facts and in the circumstances of the case, the CIT(A), NFAC has erred in confirming the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the provisions of Section 269T of the Act by the assessee. 5. Based on information received from the A.O., the JCIT initiated penalty proceedings u/s. 271E of the Act. Notice u/s. 274 r.w.s. 271E of the Act was issued on the assessee on 04.06.2018, wherein she was called upon to put forth an explanation as to why she may not be saddled with penalty u/s. 271E of the Act for having repaid the loans in cash, i.e. in contravention of the mode prescribed under law. In reply, the assessee claimed that as the financer had insisted on cash repayment of loan installments, therefore, for the said reason, she was constrained to make payments in cash to the collection agents of the financer who would issue receipts in lieu thereof. To fortify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not merit acceptance. Accordingly, the JCIT, based on his deliberations above, being of the view that the assessee had without any reasonable cause repaid the loans in contravention of the provisions section 269T of the Act, therein saddled her with a penalty of Rs. 14,59,688/- u/s. 271E of the Act. 7. On appeal, CIT(A), finding no substance in the assessee's contentions, dismissed the appeal. 8. The assessee, being aggrieved with the order of the CIT(A), has carried the matter in appeal before us. 9. We have heard the ld. Authorized Representatives of both the parties, perused the orders of the lower authorities and the material available on record, as well as considered the judicial pronouncements that have been pressed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot honored on several occasions; therefore, the collection agents of the financers had insisted upon her to make repayment of the monthly loan installments in cash; and (ii) that she was ignorant about the provisions of section 269T of the Act. 13. Before proceeding any further, we deem it fit to cull out the provisions of section 269T of the Act, which reads as under (relevant extract):- 269T. No branch of a banking company or a co-operative bank and no other company or co-operative society and no firm or other person shall repay any loan or deposit made with it [or any specified advance received by it] otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or depo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T of the Act. It is a matter of fact borne from the record that the assessee was availing the services of a Chartered Accountant and had got her accounts for the year under consideration audited from him. Considering the aforesaid factual position, and independent of the settled position of law that an assessee cannot be allowed to plead ignorance of the law, we are even otherwise of the considered view that there is no substance and merit in the claim of the assessee that she was oblivion of the modes and manner for repayment of loans as prescribed under section 269T of the Act. 16. Apropos the support drawn by the assessee from the fact that a similar penalty that was imposed in the case of her nephew, viz Shri Ajay Gill, had been vaca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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