9911796707
TMI Blog1995 (3) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... tively. The amounts under consideration are stated to have been repaid on 2-7-1990. The assessee claimed before the AO that the lenders were purely agriculturists and that they had deposited the amounts with the assessee out of sale proceeds of agricultural land. The AO ultimately came to the conclusion that the assessee had not furnished any reasonable cause about acceptance of loans under consideration in cash. In view of the said fact, he imposed a penalty of Rs. 1,20,000 which is equal to the amount of cash received by the assessee by way of loans in contravention of the provisions of sec. 269SS. 2. The appeal filed by the assessee against the above-mentioned penalty order was dismissed by the CIT(A) in limine on the ground that in ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee, the assessee has paid an amount equal to the amount of advance tax which was payable by him : Provided that, in a case falling under clause (b) and on an application made by the appellant in this behalf, the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) may, for any good and sufficient reason to be recorded in writing, exempt him from the operation of the provisions of that clause." It is to be noted that the expression "in a case falling under clause (b)" was introduced to the proviso to this sub-section by way of the abovementioned Amendment with effect from 1-4-1989. The learned departmental representative has argued in this connection that inasmuch as the return of income was actually filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be added back in the assessment of the assessee for any year and in that way, the default under consideration cannot be considered to be related to any particular assessment year. Even though the fact of the cash loan having been taken might be recorded in the books of the assessee for a particular accounting year, it cannot be said that the issue is relevant to the proceedings relating to determination of income of the assessee for the same assessment year. In fact, the default being without any reference to the question of determination of income of the assessee and the penalty not arising out of any addition made in any assessment order, the default has got to be considered as independent of any particular assessment year. In fact, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t a penalty order passed u/s 271D is not circumscribed by the provisions of sub-section (4) of sec. 249 in any way. Finally therefore, we are of the opinion that whether the assessee paid his self-assessment tax for any particular assessment year or not, shall have no relevance to the question of admissibility of the appeal against imposition of penalty u/s 271D on the assessee simply because of the fact that this penalty cannot be related to any particular assessment year or return of income in respect of any such year. Ultimately therefore, we hold that the CIT(A) was wrong in not entertaining the appeal of the assessee simply on the ground of applicability of the provisions of sec. 249(4). As we hold, the said provisions do not apply in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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