proposed to levy the penalty u/s 271D of the
Act for the violation of the provision of section 269SS ... unsecured loan from his father in
contravention to the provisions of section 269SS of the Act. Accordingly the
AO levied the penalty
read with
section 271D of the Act was issued on the legal heir of the assessee
towards alleged contravention/violation of section 269SS ... reasonable cause within the meaning of provisions of
section 273B . Violation of provisions of section 269SS can be
regarded as technical and venial breach
case for levy of penalty u/s 271D and
271E for contraventions of provisions of sections 269SS and 269T of the
Act. Accordingly he levied ... levied penalty of Rs. 17,90,000 u/s 271D
for contraventions of provisions of section 269SS , on the ground that the
assessee has accepted
assessment proceedings
initiated penalty proceedings u/s. 271D of the Act for violation of provisions of section 269SS
of the Act. During the course ... therefore,
Addl. CIT levied penalty u/s. 271D of the Act on 25.06.2007 for violation of provisions of
section 269SS of the Act in accepting
more. A plain reading of the section makes it clear that provisions of section 269SS shall be applicable only in cases of loan and deposits ... merely for technical violation of the section. The operation of section 271D is not automatic and provisions of section 273B fetter it. It is only
levied by the A. O. for
contravention of provisions of section 269SS.
ITA No.929/Ahd/2009 2
Softouch Hygiene Products ... exceeding Rs. 20,000/- each, in
violation of the provisions of section 269SS of the Act.
1. Shri K. A. Takhtawala
cause as to why penalty Under Section 271D may not be imposed as there is contravention of Section 269SS . This show cause notice was issued ... that view of the situation, Section 271D cannot be invoked to levy penalty for alleged default of Section 269SS .
11. As regards limitation, we find
amount given in cash and in contravention of the provisions of section 269SS of the Income Tax Act, 1961.
3. Being aggrieved, the assessee appealed ... levy of penalty for alleged violation of provisions of section 269SS is not justified as the assessee has not committed any offence by accepting contribution
stated that he has received loans in contravention of provisions of section
269SS as he was not aware of the legal provisions. The assessee ... being audited under section 44AB of the Income
Tax Act, 1961. Hence, the contention that it was unaware of the section 269SS
is not acceptable
duly submitted before the A.O. & JCIT.
Therefore violation of Sec. 269SS does not attract. Therefore
imposition of penalty ... cash.
Further Section 271D provides that a person takes or accepts any loan or
deposit in contravention of the provisions of section 269SS
