COMMISSIONER OF INCOME TAX, SHIMLA Vs. AMAR NATH

JUDGEMENT

(1.) Conjoint reading of provisions of Sections 269SS and 273B of the Income Tax Act, 1961 (hereinafter referred to as the Act) enables the assessee to substantiate and explain the reasonable cause, leading to failure in complying with the provisions and receiving payments in cash, in excess of the prescribed limit.

(2.) Undisputedly, with respect to the Assessment Year 2008-2009, assessee borrowed money, in cash, amounting to Rs. 13,15,000/-, from one Shri Rajesh Anand. Finding the assessee to have breached, rather willfully, provisions of Section 269SS, the Income Tax Officer, by virtue of his power, under the provisions of Section 271D of the Act, imposed penalty of the like amount. In an appeal filed by the assessee, such order stood reversed by the Commissioner of Income Tax (Appeals), Shimla, Himachal Pradesh and such action affirmed, in terms of the impugned order dated 31.1.2013, rendered by the Income Tax Appellate Tribunal.

(3.) Present petition stands admitted on the following substantial questions of law: