Tuesday, 2 July 2013

No penalty can be levied u/s 271D if assessee proves that there was a reasonable cause:

AO levied penalty u/s 271D since the assessee had accepted certain deposits in cash. CIT(A) and ITAT found that assessee was supposed to show certain bank balance for obtaining U.S. visa for his son and hence, he accepted the said cash deposits. CIT(A) and ITAT found it to be a reasonable cause for accepting deposits in cash and deleted the said penalty. The said view was upheld by the Hon’ble High Court also.

[PANACHAND HIRALAL LUNECHIA - TAX APPEAL NO.239 of 2012 - GHC]

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