Shivaji R. Pawar-HUF, Malegaon V. JCIT Central Range, Nashik

ITA 343/PUN/2011

• Counselvise Citation: 34324514 RSA 2011
• Duration Of Justice: 3 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-03-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 03-05-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 21-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Opportunity of being heard; Question of law; Reasonable cause; Corroborative evidences
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE MS. SUSHMA CHOWLA, JUDICIAL MEMBER, AND SHRI R.K. PANDA, ACCOUNTANT MEMBER. ITA.NOS.341 TO 343/PN/2011 (ASSESSMENT YEARS : 2003-04 TO 2005-06) SHIVAJI R. PAWAR (HUF), RATH GALLI, PANCH KANDIL, MALEGAON, DIST : NASHIK .. APPELLANT PAN NO. AARHS7805L VS. JCIT, CENTRAL RANGE, NASHIK .. RESPONDENT ASSESSEE BY : SHRI NIKHIL PATHAK & SHRI SANKET JOSHI REVENUE BY : SHRI RAJESH DAMOR DATE OF HEARING : 25-02-2015 DATE OF PRONOUNCEMENT : 18-03-2015 ORDER PER R.K. PANDA, AM : THE ABOVE 3 APPEALS FILED BY THE ASSESSEE ARE DIREC TED AGAINST THE SEPARATE ORDERS DATED 14-01-2011OF THE CIT(A)-I, NA SHIK RELATING TO ASSESSMENT YEARS 2003-04 TO 2005-06 RESPECTIVELY. FOR THE SAKE OF CONVENIENCE, ALL THESE APPEALS WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY THIS COMMON ORDER. 2. THE ABOVE 3 APPEALS WERE EARLIER DISMISSED BY TH E TRIBUNAL VIDE ORDER DATED 03-05-2012 FOR NON-APPEARANCE. SUBSEQU ENTLY, THE TRIBUNAL VIDE ORDER DATED 01-11-2013 RECALLED THE EARLIER OR DER. HENCE THESE ARE RECALLED MATTERS. 2 3. THE ASSESSEE IN THE ABOVE 3 APPEALS HAS CHALLENG ED THE ORDER OF THE CIT(A) CONFIRMING THE LEVY OF PENALTY U/S.271D AMOU NTING TO RS.2 LAKHS FOR A.Y. 2003-04, RS.12,57,000/- FOR A.Y. 2004-05 A ND RS.1,58,95,000/- FOR A.Y. 2005-06 RESPECTIVELY. ITA NO.341/PN/2011 (A.Y. 2003-04) : 4. FACTS OF THE CASE, IN BRIEF, ARE THAT A SEARCH A ND SEIZURE ACTION U/S.132(1) OF THE ACT WAS CONDUCTED BY THE DEPARTME NT IN THE PAWAR GROUP OF CASES, MALEGAON ON 27-01-2005. THE ASSESS EE BELONGS TO THE ABOVE GROUP WHICH IS ENGAGED IN THE BUSINESS OF REF INING OF GOLD, TRADING IN GOLD JEWELLERY, SILVER ARTICLES AND IMITATION OF JEWELLERY. THIS GROUP IS ALSO ENGAGED IN THE BUSINESS OF MONEY LENDING. DURING THE COURSE OF SEARCH 2 LONG PADS AND DIARIES WERE FOUND AND SEIZE D WHEREIN IT WAS SEEN THAT THE GROUP WAS COLLECTING LOANS IN CASH FROM VA RIOUS PERSONS IN VIOLATION OF PROVISIONS OF SECTION 269SS. THE AO I NFORMED THE JCIT, CENTRAL RANGE, NASHIK ABOUT THE ACCEPTANCE OF LOAN IN CASH AMOUNTING TO RS.2 LAKHS DURING PREVIOUS YEAR RELEVANT TO THE IMP UGNED ASSESSMENT YEAR. THE JCIT, THEREFORE, ISSUED A SHOW CAUSE NOTICE TO THE ASSESSEE ASKING HIM TO EXPLAIN AS TO WHY PENALTY U/S.271D SHOULD NO T BE LEVIED. IT WAS EXPLAINED BY THE ASSESSEE THAT THE KARTA OF THE HUF SHRI SHIVAJI R. PAWAR IS EDUCATED ONLY UPTO 4 TH STANDARD AND WAS IGNORANT ABOUT THE PROVISIONS OF SECTION 269SS. FURTHER, THE KARTA ALWAYS RESIDED I N RURAL AREAS OF KALEDHONE VILLAGE AND MALEGAON. THERE WAS NO BANK ACCOUNT IN THE NAME OF THE ASSESSEE UPTO JULY 2005. THE ACCOUNT WAS OPENED ONLY AFTER KNOWING THE PROVISIONS OF SECTION 269SS AND 269T. IT WAS EXPLAINED THAT THE MAIN ACTIVITY OF THE ASSESSEE HUF AND MAIN SOU RCE OF INCOME WAS 3 AGRICULTURE. FURTHER, ALL THE TRANSACTIONS OF ACCE PTING LOANS FROM VARIOUS PERSONS ARE GENUINE AND THE SAME WERE FOUND NOTED I N THE SEIZED DIARY MAINTAINED BY KARTA OF THE HUF. RELYING ON VARIOUS DECISIONS IT WAS SUBMITTED THAT THERE WAS REASONABLE CAUSE IN ACCEPT ING LOAN IN CASH FROM VARIOUS PERSONS. 5. HOWEVER, THE JCIT WAS NOT SATISFIED WITH THE EXP LANATION GIVEN BY THE ASSESSEE. HE OBSERVED THAT THE ASSESSEE HAS RE CEIVED LOANS IN CASH FROM THE FOLLOWING PERSONS : SR.NO. PARTY DETAILS DAY DATE AMOUNT 1 BALKRISHNA NAGMOTI SATURDAY 21-09-2005 80,000/- 2 PATIL SAHEB, JALGAON FRIDAY 01-11-2002 1,00,000/- 3 RAVINDRA SATURDAY 29-03-2003 20,000/- REJECTING THE VARIOUS EXPLANATIONS GIVEN BY THE ASS ESSEE AND OBSERVING THAT THE ASSESSEE HAS VIOLATED THE PROVISIONS OF SE CTION 269SS WITHOUT ANY REASONABLE CAUSE THE JCIT LEVIED PENALTY OF RS.2 LA KHS U/S.271D OF THE I.T. ACT. 6. THE ASSESSEE REITERATED THE SAME ARGUMENTS BEFOR E THE LD.CIT(A) AS WERE MADE BEFORE THE JCIT. THE LD.CIT(A) WAS ALSO NOT CONVINCED WITH THE EXPLANATION GIVEN BY THE ASSESSEE AND UPHELD TH E PENALTY LEVIED U/S.271D OF THE I.T. ACT BY THE JCIT. 7. AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE ASSE SSEE IS IN APPEAL BEFORE US. 8. THE LD. COUNSEL FOR THE ASSESSEE DREW THE ATTENT ION OF THE BENCH TO PAGE 11 OF THE PAPER BOOK WHICH GIVES THE DETAILS O F LOANS TAKEN BY THE ASSESSEE DURING THE IMPUGNED ASSESSMENT YEAR AND WH ICH READS AS UNDER : 4 NAME OF THE DEPOSITOR/LENDER DATE AS PER A.O. AMOUNT AS PER A.O. REMARK BALKRISHNA NAGMOTI 21/9/02 80,000/- IN FACT AS PER SEIZED RECORD THE AMOUNT WAS NOT ACCEPTED PATIL SAHEB, JALGAON 1/11/02 1,00,000/- THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S.143(3) R.W.S.153C RAVINDRA 29/3/03 20,000/- THE AMOUNT IS NOT EXCEEDING RS.20,000/- AND AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 259SS RESULTED REFERRING TO ABOVE TABLE, THE LD. COUNSEL FOR THE A SSESSEE SUBMITTED THAT THE AMOUNT OF RS.20,000/- RECEIVED FROM SHRI RAVIND RA CANNOT BE SAID TO BE IN VIOLATION OF PROVISIONS OF SECTION 269SS IN V IEW OF THE DECISION OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT VS. MA DHUKAR B. PAWAR WHERE IT HAS BEEN HELD THAT IN VIEW OF CBDT CIRCULA R NO.572 DATED 03- 09-1990 PENALTY U/S.271D CAN BE LEVIED ONLY IN A CA SE WHERE THE LOAN OR DEPOSIT IS TAKEN IN CASH IN EXCESS OF RS.20,000/-. PENALTY U/S.271D IS NOT LEVIABLE ON THE ASSESSEE FOR ACCEPTING CASH LOAN OF RS.20,000/- FROM EACH PERSON. HE ACCORDINGLY SUBMITTED THAT NO PENALTY U /S.271D CAN BE LEVIED ON ACCOUNT OF CASH LOAN RECEIVED FROM SHRI RAVINDRA AMOUNTING TO RS.20,000/-. 8.1 SO FAR AS AMOUNT OF RS.80,000/- RECEIVED FROM S HRI BALKRISHNA NAGMOTI IS CONCERNED HE DREW THE ATTENTION OF THE B ENCH TO PAGES 71 TO 73 OF THE PAPER BOOK AND SUBMITTED THAT THESE ARE THE SEIZED PAPERS RELATING TO THIS ASSESSMENT YEAR AND THE NAME OF THIS PERSON DO ES NOT APPEAR IN THE NOTINGS OF THE SEIZED DIARY. THEREFORE, HE HAS NO OBJECTION IF THE MATTER IS SENT BACK TO THE FILE OF THE AO WITH A DIRECTION TO VERIFY THE SAME. IF THE 5 NAME OF THE PERSON DOES NOT APPEAR IN THE SEIZED DI ARY, THEN THE PENALTY SO LEVIED HAS TO BE CANCELLED. 8.2 SO FAR AS RS. 1 LAKH RECEIVED FROM SHRI PATIL S AHEB OF JALGAON IS CONCERNED, HE SUBMITTED THAT ALTHOUGH THE AO HAS MA DE ADDITION U/S.68, HOWEVER, THE LD.CIT(A) HAS DELETED THE ADDITION AN D THEREFORE, THERE IS VIOLATION OF PROVISIONS OF SECTION 296SS IN ACCEPTI NG THE LOAN IN CASH. HE ACCORDINGLY FAIRLY CONCEDED THAT THE ASSESSEE HAS V IOLATED THE PROVISIONS OF SECTION 269SS BY ACCEPTING CASH LOAN OF RS.1 LAK H. 9. THE LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND HEAVILY SUPPORTED THE ORDER OF THE AO AND THE CIT(A). HE S UBMITTED THAT THE ASSESSEE BY ACCEPTING CASH LOANS HAS VIOLATED THE P ROVISIONS OF SECTION 269SS FOR WHICH PENALTY U/S.271D HAS TO BE LEVIED. THEREFORE, THE ORDER OF THE CIT(A) CONFIRMING THE LEVY OF PENALTY U/S.27 1D HAS TO BE UPHELD. 10. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES, PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A) AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE HAVE ALSO CONSIDERED THE VARIOUS DECISIONS CITED BEFORE US. SO FAR AS THE AMOUNT OF RS.20,000/- RECEIVED IN CASH FROM SHRI RAVINDRA ON 29-03-2003 IS CONCERNED, WE FIND THE HONBLE BOMBAY HIGH COURT IN THE CASE OF MADHUKAR B. PAWAR (SUPRA) HAD AN OCCASION TO DECIDE SUCH AN ISSUE. IT WAS HELD IN T HE SAID DECISION THAT IN VIEW OF CBDT CIRCULAR NO.572 DATED 03-08-90, PENALT Y U/S.271D CAN BE LEVIED IN A CASE WHERE THE LOAN OR DEPOSIT TAKEN IN CASH IS IN EXCESS OF RS.20,000/-. PENALTY U/S.271D IS NOT LEVIABLE ON T HE ASSESSEE FOR ACCEPTING CASH LOAN OF RS.20,000/- FROM EACH PERSON . THE RELEVANT 6 OBSERVATION OF THE HONBLE HIGH COURT AT PARA 4 AND 5 OF THE ORDER READS AS UNDER : 4. IT IS NOW WELL SETTLED THAT CIRCULARS ISSUED BY CBDT ARE STATUTORY IN CHARACTER AND ARE BINDING ON THE DEPARTMENTAL AUTHO RITIES. THE AUTHORITIES INCLUDING AO AND OTHER CONSEQUENTLY WOULD BE BOUND B Y THAT CIRCULAR. IN THE INSTANT CASE, CBDT FOR THE PURPOSE OF ATTRACTING S. 271D HAS SET OUT THAT THE LOAN OR DEPOSIT SHOULD BE IN EXCESS OF RS. 20,000. I T IS TRUE THAT WHAT CBDT HAS STATED MAY BE CONTRARY TO THE EXPRESS LANGUAGE OF S. 269SS WHICH USES THE EXPRESSION 'TWENTY THOUSAND RUPEES OR MORE '. THE LAW AND THE CBDT CIRCULARS CAN BE SPELLED OUT FROM THE FOLLOW ING JUDGMENTS OF THE SUPREME COURT. IN NAVNIT LAL C. JAVERI VS. K.K. SEN, AAC (1965) 56 ITR 198 (SC), A CONSTITUTION BENCH OF THE SUPREME COURT OBSER VED 'IT IS CLEAR THAT A CIRCULAR OF THE KIND WHICH WAS ISSUED BY THE BOARD WOU LD BE BINDING ON ALL OFFICERS AND PERSONS EMPLOYED IN THE EXECUTION OF THE ACT UNDER S. 5(8) OF THE ACT.' NAVNIT LAL (SUPRA) WAS FOLLOWED IN ELLERMA N LINES LTD. VS. CIT 1972 CTR (SC) 71 : (1971) 82 ITR 913 (SC). IN UCO B ANK VS. CIT (1999) 154 CTR (SC) 88 : (1999) 237 ITR 889 (SC), THE LAW WAS RESTATED AND IT WAS HELD THAT CIRCULARS OF CBDT ARE LEGALLY BINDING O N THE REVENUE AND THIS BINDING CHARACTER ATTACHES TO THE CIRCULARS EVEN IF T HEY BE FOUND NOT IN ACCORDANCE WITH THE CORRECT INTERPRETATION OF THE SE CTION AND THEY DEPART OR DEVIATE FROM SUCH CONSTRUCTION, WHEN THEY ARE ISSUED IN EXERCISE OF THE STATUTORY POWERS UNDER S. 119. IT WAS HOWEVER CLARIFIE D THAT THE BOARD CANNOT PRE-EMPT A JUDICIAL INTERPRETATION OF THE SCO PE AND AMBIT OF THE PROVISION AND FURTHER COULD NOT IMPOSE A BURDEN ON TH E TAXPAYER HIGHER THAN WHAT THE ACT ITSELF, ON A TRUE INTERPRETATION, ENVISAGES. IT WAS OBSERVED THAT THE BOARD HAS THE STATUTORY POWER UNDER S. 119 TO TONE DOWN THE RIGOUR OF THE LAW FOR THE BENEFIT OF THE A SSESSEE BY ISSUING CIRCULARS TO ENSURE A PROPER ADMINISTRATION OF THE FISC AL STATUTE. IN CST VS. INDRA INDUSTRIES (2001) 168 CTR (SC) 50 : (2001) 248 ITR 338 (SC), THE COURT FURTHER OBSERVED THAT THE TAXING AUTHORITY CAN NOT BE HEARD TO ADVANCE AN ARGUMENT THAT IT IS CONTRARY TO THAT INTE RPRETATION. 5. CONSIDERING THE CIRCULAR ISSUED BY THE CBDT AND THE LOAN BEING NOT IN EXCESS OF RS. 20,000 FROM EACH PERSON THE INTERPRETATIO N GIVEN BY THE TRIBUNAL TO THE SAID CIRCULAR, THE QUESTION OF LAW DO ES NOT ARISE AND CONSEQUENTLY, THE SAID APPEAL IS DISMISSED. THE AO COULD NOT HAVE ACTED CONTRARY TO THE CIRCULAR. 10.1 RESPECTFULLY FOLLOWING THE DECISION OF THE HON BLE JURISDICTIONAL HIGH COURT CITED (SUPRA) WE HOLD THAT PENALTY U/S.2 71D IS NOT LEVIABLE ON ACCOUNT OF CASH LOAN OF RS.20,000/- RECEIVED FROM S HRI RAVINDRA BY THE ASSESSEE SINCE THE LOAN IS NOT IN EXCESS OF RS.20,0 00/-. THE AO IS ACCORDINGLY DIRECTED TO DELETE THE PENALTY ON THIS AMOUNT. WE HOLD AND DIRECT ACCORDINGLY. 7 10.2 SO FAR AS THE AMOUNT OF RS.80,000/- RECEIVED I N CASH FROM SHRI BALAKRISHNA NAGMOTI IS CONCERNED, IT IS THE SUBMISS ION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE SEIZED DIARY DOES NOT CON TAIN NAME OF THE ABOVE MENTIONED PERSON. WE, THEREFORE, DIRECT THE ASSESS ING OFFICER TO VERIFY THE NOTINGS IN THE SEIZED DIARY FOUND DURING THE CO URSE OF SEARCH. IN CASE THE NAME OF THE ABOVE MENTIONED PERSON IS NOT APPEA RING IN THE NOTINGS IN THE SEIZED DIARY, THEN THE ASSESSING OFFICER HAS TO DELETE THE PENALTY U/S.271D ON ACCOUNT OF CASH LOAN OF RS.80,000/- REC EIVED FROM THE ABOVE MENTIONED PERSON. WE HOLD AND DIRECT ACCORDINGLY. 10.3 SO FAR AS THE CASH LOAN OF RS.1 LAKH RECEIVED FROM SHRI PATIL SAHEB OF JALGAON IS CONCERNED, THE LD. COUNSEL FOR THE AS SESSEE FAIRLY CONCEDED THAT THERE IS VIOLATION OF PROVISIONS OF SECTION 26 9SS. WE, THEREFORE, UPHOLD THE LEVY OF PENALTY U/S.271D ON ACCOUNT OF A CCEPTANCE OF CASH LOAN OF RS.1 LAKH FROM SHRI PATIL SAHEB OF JALGAON. 11. THE APPEAL FOR THE IMPUGNED ASSESSMENT YEAR IS ACCORDINGLY PARTLY ALLOWED FOR STATISTICAL PURPOSES. ITA NO.342/PN/2011 (A.Y. 2004-05) : 12. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSES SEE DURING THE IMPUGNED ASSESSMENT YEAR HAS RECEIVED CASH LOAN OF RS.15,27, 000/- FROM VARIOUS PERSONS THE DETAILS OF WHICH ARE AS UNDER : SR.NO. PARTY DETAILS DAY DATE AMOUNT 1 JAMBO SETH THURSDAY 01:01.2004 50000 2 JYOTI MAHAJAN FRIDAY 27.02.2004 600000 3 KALPANA R.PATIL FRIDAY 12.03.2004 20000 4 LATADEVI MALPANI TUESDAY 01.04.2003 50000 5 NITA DEVI MALPANI TUESDAY 01.04.2003 50000 6 RAMESH PAWAR REKHA PATIL SATURDAY 26.07.2003 50000 7 RUPALI MALPANI TUESDAY 01 . 04.2003 50000 8 8 SHIVAJI M.KOTHAWADE TUESDAY 06.01.2004 130000 9 S.LPATIL THURSDAY TUESDAY 01.01.2004 13.01.2004 60000 80000 10 SONALI MALPANI TUESDAY THURSDAY 01.04:2003 29.01.2004 50000 70000 JAGGANATH L. PAWAR THURSDAY WEDNESDAY 26.06.2003 17.12.2003 160000 17000 11 SUJATA BHAMRE TUESDAY 16.12.2003 90000 TOTAL 1527 0 00 12.1 THE AO, THEREFORE, INFORMED THE JCIT ABOUT THE ACCEPTANCE OF SUCH CASH LOANS IN VIOLATION OF PROVISIONS OF SECTION 26 9SS. THE JCIT ACCORDINGLY ISSUED SHOW CAUSE NOTICE TO THE ASSESSE E ASKING HIM TO EXPLAIN AS TO WHY PENALTY U/S.271D OF THE INCOME TA X ACT, 1961 SHOULD NOT BE LEVIED. 12.2 ON THE BASIS OF VARIOUS SUBMISSIONS MADE BY TH E ASSESSEE, THE JCIT NOTED THAT THE ASSESSEE HAS RECEIVED AN AMOUNT OF R S.50,000/- FROM S.L. PATIL AND RS.90,000/- FROM MRS. SUJATA BHAMRE WHICH HAS BEEN ADDED BY THE AO U/S.68 OF THE I.T. ACT. SIMILARLY, AN AMOUN T OF RS.50,000/- FROM SMT. SONALI MALPANI AND RS.80,000/- FROM SHRI S.I. PATIL WERE RECEIVED BY ACCOUNT PAYEE CHEQUES HAVE BEEN ADDED BY THE AO U/S .68 OF THE I.T. ACT. THEREFORE, HE HELD THAT PENALTY U/S.271D CANNOT BE LEVIED ON THE ABOVE AMOUNTS TOTALING TO RS.2,70,000/- HE ACCORDINGLY R EDUCED THE PENALTY SO LEVIED FROM RS.15,27,000/- TO RS.12,57,000/-. IN A PPEAL THE LD.CIT(A) UPHELD THE ACTION OF THE AO. 12.3 AGGRIEVED WITH SUCH ORDER OF THE CIT(A) THE AS SESSEE IS IN APPEAL BEFORE US. 9 12.4 THE LD. COUNSEL FOR THE ASSESSEE REFERRING TO PAGES 12 TO 14 OF THE PAPER BOOK DREW THE ATTENTION OF THE BENCH TO THE D ETAILS OF DEPOSITS/LOANS ACCEPTED BY THE HUF LATE SHRI SHIVAJI R. PAWAR WHIC H ARE AS UNDER : NAME OF THE DEPOSITOR/LENDER DATE AS PER A.O. AMOUNT AS PER A.O. REMARK JAMBO SETH 1/1/4 50,000 THE LENDER IS RETIRED PERSO N AND NOT HAVING TAXABLE INCOME. FURTHER, THE AMOUNT WAS REPAID BY A/C. PAYEE CHEQUE IN F.Y. 2007-08 JYOTI MAHAJAN 27/2/04 6,00,000 LENDER IS AGRICULTUR ISTS AND HAVING NO BANKING FACILITY AT HER VILLAGE KALPANA R. PATIL 12/3/04 20,000 THE AMOUNT IS NOT E XCEEDING RS.20,000/- AND AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. SHE IS ENGAGED IN AGRICULTURAL ACTIVITY ONLY. LATADEVI MALPANI 1/4/03 50,000 IN FACT THE AMOUNTS WERE RECEIVED AS FOLLOWS : SHRI S.R. PAWAR HUF RS.16,000/- M/S. S.R. PAWAR (DEBTORS DIARY) RS.16,000/- M/S. R.S. PAWAR (DEBTORS DIARY - RS.18,000/- ACCORDINGLY, THE ENTRIES WERE MADE IN THE BOOKS OF ACCOUNTS PREPARED AND ACCEPTED BY THE A.O. IN ASSESSMENT PROCEEDINGS. THE TRANSACTIONS ARE ALSO REFLECTED IN ABOVE MANNER BY THE LENDER IN HER BOOKS OF ACCOUNT AND RETURN FILED. NEETADEVI MALPANI 1/4/03 50,000 IN FACT THE AMOUNTS WERE RECEIVED AS FOLLOWS : SHRI S.R. PAWAR HUF RS.16,000/- M/S. S.R. PAWAR (DEBTORS DIARY) RS.19,000/- M/S. R.S. PAWAR (DEBTORS DIARY - RS.15,000/- ACCORDINGLY, THE ENTRIES WERE MADE IN THE BOOKS OF ACCOUNTS PREPARED AND ACCEPTED BY THE A.O. IN ASSESSMENT PROCEEDINGS. THE TRANSACTIONS ARE ALSO REFLECTED IN ABOVE MANNER BY THE LENDER IN HER BOOKS OF ACCOUNT AND RETURN FILED. RAMESH PAWAR (REKHA PATIL) 26/7/03 50,000 THE LENDER IS AGRICULTURIST, LIKE TH E ASSESSEES HUF AND IS RESIDING AT REMOTE VILLAGE HAVING NO BANKING FACILITY RUPALI MALPANI 1/4/03 50,000 IN FACT THE AMOUNTS WE RE RECEIVED AS FOLLOWS : SHRI S.R. PAWAR HUF RS.16,000/- M/S. S.R. PAWAR (DEBTORS DIARY) RS.18,000/- M/S. R.S. PAWAR (DEBTORS DIARY - RS.16,000/- 10 ACCORDINGLY, THE ENTRIES WERE MADE IN THE BOOKS OF ACCOUNTS PREPARED AND ACCEPTED BY THE A.O. IN ASSESSMENT PROCEEDINGS. THE TRANSACTIONS ARE ALSO REFLECTED IN ABOVE MANNER BY THE LENDER IN HER BOOKS OF ACCOUNT AND RETURN FILED. SHIVAJI M. KOTHAWADE 6/1/04 1,30,000 THE LENDER IS AGRICULTURIST, LIKE T HE ASSESSEES HUF AND IS RESIDING AT DESHERWADE TAL. SAKRI, DIST. DHULE. NO BANKING FACILITY AVAILABLE IN THE VILLAGE. S.L. PATIL 1/1/04 13/1/04 60,000 80,000 THE A.O. HAS TAXED THE AMOUNT OF RS.60,000/- AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S.143(3) R.W.S. 153C. FURTHER, THE AMOUNT OF RS.80,000/- HAS BEEN RECEIVED BY A/C. PAYEE CHEQUE BY M/S. R.S. PAWAR. THIS FACT OF CHEQUE PAYMENT IS MENTIONED IN SEIZED DIARY. THEREFORE THE ASSESSEE IS NOT CONCERNED WITH THE SAID LOAN OF RS.80,000/- ACCEPTED BY M/S. R.S. PAWAR BY A/C. PAYEE CHEQUE SONALI MALPANI 1/4/03 29/1/04 50,000 70,000 ACTUALLY AMOUNT OF RS.50,000/- BELONGS TO RUPALI AND SAME IS ACCEPTED IN CHEQUE, APPEARING IN THE BOOKS OF PAWAR JEWELLERS AND SAME IS ALSO SHOWN BY THE LENDER IN HER BOOKS. YOUR ASSESSEE IS NOT CONCERNED WITH THE SAID LOAN ACCEPTED BY M/S. PAWAR JEWELLERS BY A/C. PAYEE CHEQUE. THE AMOUNT OF RS.70,000/- IS RECEIVED AS FOLLOWS : SHRI S.R. PAWAR HUF RS.19,000/- M/S. S.R. PAWAR (DEBTORS DIARY) RS.18,000/- M/S. R.S. PAWAR (DEBTORS DIARY - RS.17,000/- M/S. PAWAR JEWELLERS (DEBTORS DIARY) RS.16,000/- ACCORDINGLY, THE ENTRIES WERE MADE IN THE BOOKS OF ACCOUNTS PREPARED AND ACCEPTED BY THE A.O. IN ASSESSMENT PROCEEDINGS. THE TRANSACTIONS ARE ALSO REFLECTED IN ABOVE MANNER BY THE LENDER. JAGGANATH N. PAWAR 26/6/03 17/12/03 1,60,000 ACTUAL AMOUNT RECEIVED IS RS.16,000/- AND NOT RS.1,60,000/- AS PER SEIZED DIARY. FURTHER AN AMOUNT OF RS.1000/- WAS TAKEN AND REPAID RS.1,000/-. THE BALANCE AMOUNT WAS RS.17,000/-. THE LENDER IS AN AGRICULTURIST AND THE AMOUNT ACCEPTED IS BELOW RS.20,000/-. HE IS RESIDING AT REMOTE VILLAGE. SUJATA BHAMRE 16/12/03 90,000 THE LENDER IS AGRICUL TURIST AND WAS NOT HAVING BANK ACCOUNT. FURTHER, THE AO HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S.143(3) R.W.S. 153C 11 REFERRING TO THE ABOVE CHART, THE LD. COUNSEL FOR T HE ASSESSEE SUBMITTED THAT IN VIEW OF THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF MADHUKAR B. PAWAR, NO PENALTY U/S.271D CAN BE LE VIED ON ACCOUNT OF CASH LOAN OF RS.20,000/- RECEIVED FROM SMT. KALPANA R. PATIL. 12.5 SO FAR AS THE AMOUNT OF RS.50,000/- TAKEN FROM LATADEVI MALPANI IN CASH IS CONCERNED HE SUBMITTED THAT THE ABOVE AM OUNTS WERE RECEIVED FROM S.R. PAWAR HUF-RS.16,000/-, RS.16,000 FROM S.R . PAWAR (DEBTORS DIARY) AND RS. 18,000/- FROM R.S. PAWAR. 12.6 REFERRING TO PAGE 64 OF THE PAPER BOOK HE DREW THE ATTENTION OF THE BENCH TO THE SCHEDULE OF CURRENT LIABILITIES WHERE NAMES OF ALL THESE PERSONS ARE APPEARING. HE ACCORDINGLY SUBMITTED TH AT THIS ISSUE CAN BE RESTORED TO THE FILE OF THE AO WITH A DIRECTION TO VERIFY AND DECIDE THE ISSUE ACCORDINGLY. SIMILAR IS THE SITUATION IN THE CASE OF SMT. NEETADEVI MALPANI, SMT. RUPALI MALPANI AND SMT. SONALI MALPAN I. HE ACCORDINGLY SUBMITTED THAT THE AO MAY BE DIRECTED TO VERIFY THE DETAILS FROM THE SEIZED DIARY AND DECIDE THE ISSUE ACCORDINGLY. SO FAR AS THE AMOUNT OF RS.50,000/- FROM SHRI RAMESH D. PAWAR RECEIVED IN C ASH ON 26-07-2003 IS CONCERNED HE SUBMITTED THAT THE LENDER IS AN AGR ICULTURIST LIKE THE ASSESSEE HUF AND HAS RESIDED AT A REMOTE VILLAGE HA VING NO BANKING FACILITY. UNDER THESE CIRCUMSTANCES, THERE WAS A R EASONABLE CAUSE FOR ACCEPTING THE CASH LOAN. THEREFORE, THE SAME HAS T O BE DELETED. HE HOWEVER SUBMITTED THAT THE ISSUE OF HAVING NO BANKI NG FACILITY IN THE VILLAGE OF THE LENDER SHRI RAMESH D. PAWAR CAN BE S ET-ASIDE TO THE FILE OF THE AO WITH A DIRECTION TO VERIFY THE SAME AND DELE TE THE PENALTY IF THE 12 CONTENTION OF THE ASSESSEE IS FOUND TO BE CORRECT. AS REGARDS THE CASH LOAN OF RS.1,30,000/- TAKEN FROM SHRI SHIVAJI KOTHAWADE ON 06-01-2004 IS CONCERNED HE SUBMITTED THAT THE CASE OF THIS PERSON IS LIKE THAT OF SHRI RAMESH D. PAWAR WHO IS ALSO NOT HAVING ANY BANKING FACILITY AND RESIDING IN A REMOTE VILLAGE. THEREFORE, THIS ISSUE ALSO MA Y BE RESTORED TO THE FILE OF THE AO FOR VERIFICATION. 12.7 SO FAR AS AMOUNT OF RS.1,40,000/- TAKEN FROM S HRI S.L. PATIL IS CONCERNED HE SUBMITTED THAT OUT OF THE ABOVE AMOUNT THE ASSESSEE HAS RECEIVED AN AMOUNT OF RS.80,000/- BY ACCOUNT PAYEE CHEQUE IN THE NAME OF M/S. R.S. PAWAR. THIS FACT OF CHEQUE PAYMENT IS MENTIONED IN THE SEIZED DIARY, THEREFORE, NO PENALTY IS LEVIABLE. S O FAR AS THE BALANCE AMOUNT OF RS.60,000/- IS CONCERNED HE SUBMITTED THA T THE AMOUNT HAS ALREADY BEEN TAXED BY THE AO U/S.68 OF THE INCOME T AX ACT AND THEREFORE, NO PENALTY U/S.271D IS LEVIABLE ON THIS AMOUNT. HE HOWEVER SUBMITTED THAT THIS ISSUE ALSO MAY BE RESTORED TO THE FILE OF THE AO WITH A DIRECTION TO VERIFY THE SAME. 12.8 AS REGARDS THE AMOUNT OF RS.1,60,000/- RECEIVE D IN CASH ON 26-06- 2003 AND AMOUNT OF RS.17,000/- RECEIVED IN CASH ON 17-12-2002 FROM SHRI JAGANNATH PAWAR IS CONCERNED HE SUBMITTED THAT THE ACTUAL AMOUNT IS RS.16,000/- AND NOT RS.1,60,000/- AS PER THE SEIZED DIARY. FURTHER, AN AMOUNT OF RS.1,000/- WAS TAKEN AND REPAID. THE BAL ANCE AMOUNT WAS ONLY RS.17,000/-. FURTHER, THE AMOUNT IS ALSO LESS THAN RS.20,000/-, THEREFORE, THIS ISSUE ALSO CAN BE SET ASIDE TO THE FILE OF THE AO WITH A DIRECTION TO VERIFY FROM THE SEIZED DIARY AND THEREAFTER TO DELE TE THE PENALTY. 13 12.9 AS REGARDS THE AMOUNT OF RS.60,000/- FROM MRS. JYOTI MAHAJAN IS CONCERNED, HE SUBMITTED THAT THE LENDER IS AN AGRIC ULTURIST AND HAS GOT NO BANKING FACILITY AT HER VILLAGE. HE, HOWEVER, EXPR ESSED HIS INABILITY TO SUBSTANTIATE THE SAME WITH SUPPORTING EVIDENCE. IN CASE OF SHRI JAMBO SETH HE FAIRLY ADMITTED THAT THERE IS VIOLATION OF PROVISIONS OF SECTION 269SS. 12.10 SO FAR AS THE AMOUNT OF RS.90,000/- FROM SMT. SUJATA BHAMRE IS CONCERNED HE SUBMITTED THAT THE AO HAS NOT LEVIED A NY PENALTY ON THIS AMOUNT. HE ACCORDINGLY SUBMITTED THAT APPROPRIATE DIRECTION MAY BE GIVEN TO THE AO. 13. THE LD. DEPARTMENTAL REPRESENTATIVE ON THE OTHE R HAND HEAVILY RELIED ON THE ORDER OF THE CIT(A). 14. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES, PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A) AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE HAVE ALSO CONSIDERED THE VARIOUS DECISIONS CITED BEFORE US. SO FAR AS THE AMOUNT OF RS.20,000/- RECEIVED IN CASH ON 12-03-2004 FROM SMT. KALPANA R. PATIL IS CO NCERNED THE SAME HAS TO BE DELETED IN VIEW OF THE DECISION OF HONBLE BO MBAY HIGH COURT IN THE CASE OF MADHUKAR D. PAWAR (SUPRA) WHICH HAS ALR EADY BEEN INCORPORATED AT PARA 10 OF THE IMPUGNED ORDER VIDE ITA NO.341/PN/2011. FOLLOWING THE REASONINGS GIVEN THEREIN, PENALTY U/S .271D ON THIS AMOUNT IS DIRECTED TO BE DELETED. 14.1 SO FAR AS THE AMOUNT OF RS.50,000/- RECEIVED F ROM SMT.LATADEVI MALPANI, RS.50,000/- FROM SMT.NEETADEVI MALPANI, RS .50,000/- FROM 14 SMT.RUPALI MALPANI AND RS.1,20,000/- FROM SHRI SONA LI MALPANI ARE CONCERNED IN VIEW OF THE SUBMISSION OF THE LD. COUN SEL FOR THE ASSESSEE THE AMOUNTS ARE TAKEN FROM DIFFERENT PERSONS NOT EX CEEDING RS.20,000/- IN EACH CASE, THE SAME ARE RESTORED TO THE FILE OF THE AO WITH A DIRECTION TO VERIFY FROM THE SEIZED DIARY AND TAKE APPROPRIATE D ECISION AS PER LAW AND FACTS AFTER GIVING DUE OPPORTUNITY OF BEING HEARD T O THE ASSESSEE. 14.2 SO FAR AS THE AMOUNT OF RS.50,000/- RECEIVED F ROM SHRI RAMESH D. PAWAR AND RS.1,30,000/- FROM SHRI SHIVAJI KOTHAWADE ARE CONCERNED THE SAME IS RESTORED TO THE FILE OF THE AO WITH A DIRE CTION TO VERIFY THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE ABOVE PERSONS ARE AGRICULTURISTS AND HAVE NO BANKING FACILITY AT THEI R RESPECTIVE VILLAGES. IF THE SAME IS FOUND TO BE CORRECT, THEN IN OUR OPINIO N THERE EXISTS REASONABLE CAUSE FOR ACCEPTING SUCH CASH LOAN FROM THE AGRICUL TURISTS HAVING NO BANKING FACILITY AND THE ASSESSING OFFICER IS DIREC TED TO CANCEL THE PENALTY U/S.271D. 14.3 SO FAR AS THE AMOUNT OF RS.1,40,000/- RECEIVED FROM SHRI S.L. PATIL IS CONCERNED, IT IS THE SUBMISSION OF THE LD. COUNS EL FOR THE ASSESSEE THAT HE HAS RECEIVED AN AMOUNT OF RS.80,000/- BY ACCOUNT PAYEE CHEQUE FROM SHRI S.L. PATIL AND THE LOAN OF RS.60,000/- HAS BEE N ADDED BY THE AO U/S.68 OF THE I.T. ACT. SIMILARLY, IT IS THE SUBMI SSION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE AMOUNT OF RS.1,60,000/- R ECEIVED FROM MR. JAGANNATH PAWAR IS NOT CORRECT AND IT IS ONLY RS.16 ,000/- AS PER THE SEIZED DIARY AND THE ASSESSEE HAS TAKEN FURTHER LOAN OF RS .1000/- WHICH WAS ALSO REPAID. WE, THEREFORE, RESTORE THIS ISSUE TO THE F ILE OF THE AO WITH A DIRECTION TO VERIFY FROM THE SEIZED DIARY REGARDING THE VERACITY OF THE 15 ABOVE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSE E AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTER GIVING DUE OPPO RTUNITY OF BEING HEARD TO THE ASSESSEE. 14.4 SO FAR AS THE AMOUNT OF RS.50,000/- RECEIVED F ROM SHRI JAMBO SETH AND RS.6 LAKHS FROM SHRI JYOTI MAHAJAN ARE CONCERNE D IN ABSENCE OF ANY SATISFACTORY EXPLANATION GIVEN BY THE ASSESSEE REGA RDING NON LEVY OF PENALTY U/S.271D WE UPHOLD THE ORDER OF THE CIT(A) CONFIRMING THE LEVY OF PENALTY ON THE ABOVE AMOUNTS. SINCE ACCORDING T O THE LD. COUNSEL FOR THE ASSESSEE, NO PENALTY HAS BEEN LEVIED IN THE CAS E OF LOAN FROM SMT. SUJATA BHAMRE, WE ARE NOT DEALING WITH THIS ISSUE. 15. THE APPEAL FILED BY THE ASSESSEE FOR THE ABOVE ASSESSMENT YEAR IS ACCORDINGLY PARTLY ALLOWED FOR STATISTICAL PURPOSES . ITA NO.343/PN/2011 (A.Y. 2005-06) : 16. FACTS OF THE CASE, IN BRIEF, ARE THAT THE AO VI DE HIS LETTER DATED 27- 03-2008 INTIMATED TO THE JCIT THAT THE ASSESSEE HAS RECEIVED CASH LOAN FROM VARIOUS PERSONS AMOUNTING TO RS.1,73,77,200/- THE DETAILS OF WHICH ARE GIVEN AS PER PAGES 1 TO THE 5 OF THE PENALTY OR DER. BEFORE THE JCIT, THE ASSESSEE JUSTIFIED ACCEPTING OF SUCH CASH LOANS FRO M VARIOUS PERSONS. IT WAS ARGUED THAT THERE WAS REASONABLE CAUSE ON THE P ART OF THE ASSESSEE. HOWEVER, THE JCIT WAS NOT SATISFIED WITH THE EXPLAN ATION GIVEN BY THE ASSESSEE. AFTER CONSIDERING THE SUBMISSION OF THE ASSESSEE AND NOTING THAT CERTAIN AMOUNTS WERE ADDED BY THE AO U/S.68 AND CON SIDERING CERTAIN AMOUNTS TO BE LESS THAN RS.20,000/- HE DELETED THE PENALTY U/S.271D ON ACCOUNT OF CASH LOANS ACCEPTED BY THE ASSESSEE TO T HE TUNE OF 16 RS.14,78,200/-. HE ACCORDINGLY LEVIED PENALTY OF R S.1,58,95,000/- U/S.271D OF THE I.T. ACT ON THE BALANCE AMOUNT. IN APPEAL THE LD.CIT(A) CONFIRMED THE PENALTY SO LEVIED BY THE JCIT. AGGRI EVED WITH SUCH ORDER OF THE CIT(A) THE ASSESSEE IS IN APPEAL BEFORE US. 16.1 THE LD. COUNSEL FOR THE ASSESSEE FILED THE FOL LOWING CHART GIVING THE DETAILS OF DEPOSITS/LOANS ACCEPTED BY SHIVAJI R. PA WAR (HUF) : NAME OF THE DEPOSITOR /LENDER DATE AS PER A.O. AMOUNT AS PER A.O. REMARK ANANT P. MORE 27/12/04 26,000 THE LENDER IS AGRICULTURIST AND WAS NOT HAVING BANK ACCOUNT. FURTHER THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C. ANJANABAI CHAUDHARI 1/1/05 25,000 THE LENDER IS AGRICULTURIST AND WAS NOT HAVING BANK ACCOUNT. FURTHER THE A.O, HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C. A.R. SALUNKE 20/12/04 7,25,000 THE LENDER IS AGRICULTURIST, AMOUNT ACTUALLY BELONGS TO VINAYAK BORSE ASHA BAHALKAR 1/6/04 20,000 THE AMOUNT IS NOT EXCEEDING RS. 20,000/- AND AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. ASHA G. HINGE 1/1/05 12/12/04 50,000 25,000 AMOUNT ACCEPTED ON SUNDAY . ASHOK B. VAIDYA 12/12/04 40,000 AMOUNT ACCEPTED ON SUNDAY . LENDER WAS RETIRED PERSON . HE IS NOW NO MORE. ASHOK G. VARKHEDE 14/1/05 3/12/04 50,000 15,000 IN CASE OF AMOUNT RS. 15000/-WHICH IS NOT EXCEEDING RS. 20,000/- AND AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. BAIJABAI P. DEORE 5/12/04 50,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. RESIDING AT MEHUNE VILLAGE. NO BANKING FACILITY AVAILABLE N THE VILLAGE. PAYMENT RECD. ON SUNDAY. BALKRISHNA NAGMOTI 21/12/04 15,000 A S AMOUNT RS.15000/-WHICH IS NOT EXCEEDING RS. 20,000/- AND AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. BALU A. DANDAGAVHAL 22/1/5 20,000 A S AMOUNT RS.20000/-WHICH IS NOT EXCEEDING RS. 20,000/- AND AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. THE A.O. TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER U/S.143(3) R.W.S.153C 17 BHAGWAN S. CHAUDHARI 9/12/04 11/12/04 10/12/04 2/12/04 60,000 6,000 8,000 20,000 A S AMOUNT RS.20000/-WHICH IS NOT EXCEEDING RS. 20,000/- AND AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. BHALUSETH VADNERE 1/1/05 2,50,000 SENIOR CITIZEN. MAJURI INCOME ONLY. BHARAT BHATE 17/10/04 15/10/0 4 1/10/04 5/10/04 1,00,000 20,000 80,000 50,000 THE AMOUNT OF RS.1,00,000/- WAS RECEIVED ON SUNDAY. IN RESPECT OF RS.20,000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. BHAUSINGH F. PAWAR 25/1/05 42,000 THE A.O. TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER U/S.143(3) R.W.S.153C BHILA D. TISGE 22/12/04 60,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEES HUF. THE A.O. TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER U/S.143(3) R.W.S.153C BINDU JOSHI 5/12/04 40,000 AMOUNT ACCEPTED ON SUNDAY B.N. WANI 25/11/04 80,000 -- B.T. WANI SIR 12/12/04 90,000 RETIRED PERSON. AMOUNT ACCEPTED ON SUNDAY. CHANDRAKALA R. SALUNKE 1/6/04 20/5/04 30,000 20,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEES HUF. IN RESPECT OF RS.20,000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. DATTU CHAUDHARI 21/1/05 28,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C. DILIP JAJU 12/12/04 2/1/05 1/1/05 1/1/05 1,00,000 1,00,000 4,00,000 2,00,000 FIRST TWO PAYMENT REED, ON SUNDAY. ..............DO.............. DINESH WANI 19/7/04 10/6/04 20,000 2,60,000 IN RESPECT OF RS.20000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. DHANRAJ D. PATIL 22/1/05 85,000 - DHARMENDRA SONAWANE 1/12/04 13/12/04 1/12/04 15/12/04 1,00,000 40,000 36,000 12,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. IN RESPECT OF AMOUNT LESS THAN RS.20000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. RESIDING AT REMOTE VILLAGE FROM MALEGAON TALUKA. DILIP JOSHI 27/12/04 40,000 HE IS LABOUR, HAVING NO BANK A/C AT THE TIME . DINESH JAGTAP 22/1/05 80,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. DINESH SONAR 14/1/05 64,000 HE IS LABOUR , HAVING NO BANK A/C AT THE TIME OF PAYMENT. D.S. WANI SIR 15/11/04 1,75,000 RETIRED - AGRICULTURIST. GOVIND SONJE 15/1/05 1,65,000 AS PER AFFIDAVIT AMOUNT BELONGS TO TWO LADIES, WHO ARE HOUSEWIVES. 18 G.V. MALPURE 28/12/04 1,00,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. AND IS RESIDING AT VILLAGE KALWAN HARI HARESHWAR 14/12/04 50,000 OCCUPATION IS BHIKSHUKI. SAID A/C BELONG TO JOSHI GURUJI, AMOUNT OF RS. 9000/- ADDED IN INCOME. HINGE MADAM 1/1/05 2,00,000 SHE IS PENSIONER . HIRACHAND P. KOTHARI 7/1/05 1,00,000 - INDUBAI TATAR 4/I 2/04 23,000 HOUSEWIFE . NO BANK A/C. NO OTHER INCOME SOURCE. JAGGANATH L PAWAR 17/7/04 17/12/04 15,000 15,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. RESIDING AT KAULANE. ACTUALLY THERE IS ONE ENTRY WHICH IS RENEWED ON 17-12-2004 AND NOT TWO ENTRIES AS STATED IN NOTICE. IN RESPECT OF AMOUNT L ESS THAN RS.20000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. JARANA JOSHI 5/12/04 50,000 AMOUNT ACCEPTED ON SUNDAY. ACTUALLY AMOUNT IS RS. 19500/-. FURTHER THE A.O. HAS TAXED THE AMOUNT RS.19500/- AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S, 143(3) R.W.S. 153C. JAIPRAKASH JADHAV 22/12/04 22/12/04 22/12/04 20/12/04 6/12/04 12/12/04 45,000 1,00,000 55,000 50,000 50,000 50,000 THE AMOUNT OF RS.50000/- ON 12-12-2004 IS RECEIVED ON SUNDAY. LENDER NOW EXPIRED. JOSHI GURUJI 15/12/04 18/12/04 6,700 7,000 OCCUPATION BHIKSHUKI. AS AMOUNT IS LESS THAN RS.20000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISION S OF SECTION 269SS RESULTED. THE A.O. HAS TAXED THE AMOUNT RS.50,000/- AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C, WHICH INCLUDES RS. 13,700/-. JYOTI D. CHAUDHARI 22/8/04 50,000 AMOUNT ACCEPTED ON SUNDAY. JYOTI MAHAJAN 27/5/04 4,50,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. RESIDING AT KAULANE. REMOTE VILLAGE OF MALEGAON TALUKA. KAMLABAI K. PATIL 18/11/04 20,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. AS AMOUNT NOT EXCEEDING RS.20000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF REVISIONS OF SECTION 269SS RESULTED, 'HE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S.143(3) R.W.S.153C KIRAN G. BHAVSAR 19/12/04 60,000 AMOUNT ACCEPTED ON SUNDAY . THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. KISHOR C. C. 12/11/04 10,000 THE LENDER IS AGRICULTURIST, LIKE THE AMRUTKAR 11/12/04 10,000 ASSESSEE'S H.U.F. IN RESPECT OF AMOUNT 27/12/04 10,000 UP TO RS.20000/- AS HELD BY RAJASTHAN 27/12/04 10,000 HIGH COURT AND VARIOUS OTHER COURTS, 29/12/04 20,000 NO CONTRAVENTION OF PROVISIONS OF 3/12/04 12/11/04 40,000 10,000 SECTION 269SS RESULTED. 19 23/11/04 15/12/04 25/12/04 28/12/04 20,000 15,000 16,000 10,000 KRANTI G. AHIRE 27/12/04 8,14,000 - MADHAV B. JOSHI 28/12/04 55,000 SENIOR CITIZEN. LABOUR CHARGES INCOME MADHUKAR CHAUDHARI SIR 5/1/05 20/12/14 4,00,000 SENIOR CITIZEN. RETIRED PERSON MADHUKAR MANGLE 12/11/04 50,000 RETIRED PERSON. THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S.143(3) R.W.S.153C MADHUKAR PAWAR 1/1/05 1,20,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEES HU F IS CLOSE RELATIVE OF PAWAR FAMILY. IN VIEW OF PUNE TRIBUNALS DECISION IN THE CASE OF KASALIWAL, NO PENALTY LEVIABLE. MANGLA D. BHAMRE 5/12/04 5/12/04 10/12/04 3,50,000 30,000 30,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEES HU F. IN RESPECT OF ACCEPTANCE OF AMOUNT ON 5-12-2004 AND RS.350000 & RS.30000 SAME WAS ACCEPTED ON SUNDAY MANJULA C. AMRUTKAR 5/1/04 11/12/04 15/12/04 5/12/04 16/11/04 19/12/04 29/12/04 19/12/04 3,00,000 70,000 10,000 15,000 15,000 10,000 20,000 20,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEES HUF. IN RESPECT OF ACCEPTANCE OF AMOUNT ON 5-12-2004 FOR RS.15000/- AND ON 19-12-2004 FOR RS.10000 SAME IS ON SUNDAY. IN RESPECT OF AMOUNT UP TO RS.20000/- AS HELD BY RAJASTHAN H.C. AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. MANOHAR H. 27/12/04 60,000 THE LENDER IS AGRICULTURIST, LIKE THE CHAUDHARI ASSESSEE'S H.U.F. M.D. BHAMRE 1/10/04 50,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. AMOUNT RECEIVED ON SUNDAY. MEERABAI HIRE 14/12/04 11/12/04 80,000 20,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C. IN RESPECT OF AMOUNT UP TO RS.20000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. MEGHA JOSHI 5/12/04 40,000 AMOUNT RECEIVED ON SUNDAY. LADIES IS HOUSEWIFE. THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S . 153C. MONABAI KANKARIYA 16/11/04 80,000 HOUSEWIFE AS WELL SHE IS SENIOR CITIZEN MURLIDHAR R. AHIRRAO 23/12/04 30/12/04 1,00,000 45,000 RETIRED AND SENIOR CITIZEN NAMDEO P. MALI 24/12/04 50,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S . 153C. THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEES HUF. 20 NARENDRA MAHARAJ 5/1/05 20,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S . 153C. AMOUNT RECEIVED ON SUNDAY. IN RESPECT OF AMOUNT UPTO 20,0000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED NARENDRA O. MALI 2/1/05 60,000 AMOUNT RECEIVED ON SUNDAY . NIMBABAI CHAUDHARI 5/12/04 5/12/04 24/11/04 6/12/04 60,000 2,000 2,000 4,000 AMOUNT OF RS.60000/-& RS.2000/- RECEIVED ON SUNDAY . THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. NIRMALA G. PATIL 1/1/05 20,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S . 153C. IN RESPECT OF AMOUNT UPTO 20,0000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED PARUL J. DOSHI 12/8/04 20,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S . 153C. IN RESPECT OF AMOUNT UPTO 20,0000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED PRAKASH R. KHAIRNAR 25/12/04 2,00,000 RETIRED PERSON. THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C. PREMABAI G. SISODIA 6/12/04 1,00,000 HOUSEWIFE AND SENIOR CITIZEN. PREMA JOSHI 3/10/04 30,500 AMOUNT RECEIVED ON SUNDAY. PRERANA SHINDE 27/4/04 5,00,000 - RAJASBAI TRAMBAK 12/12/04 10,000 SENIOR CITIZEN. AMOUNT RECEIVED ON SUNDAY . THE A.O. HAS TAXED THE RAJENDRA R CHAUDHARI 24/12/04 90,000 - RAJU SAKHARIA 1/4/04 1,00,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S . 153C. RAMBHAI (UTTAM CHAUDHARI ) 27/12/04 20/12/04 7/12/04 1,80,000 50,000 1,40,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. RAMESH D. BRAMHANKAR 4/12/04 1/12/04 3/12/04 1/12/04 30,000 50,000 50,000 80,000 RETIRED PERSON. RAMESH PAWAR ( REKHA PATIL ) 14/1/05 70,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. AND IS RESIDING AT SAUNDANE RAM POPHALE 7/12/04 21/12/04 11/12/04 1,74,000 94,000 36,000 PRIVATE SERVICE. R.B SURYAWANSHI SIR 1/2/05 1,75,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. IS RESIDING AT MUNGSE VILLAGE. SANDHYA SHAH (KAKA) 1/1/05 50,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3)R.W.S. 153C. 21 SANTOSH CHAUHAN 26/10/04 27/10/04 1,00,000 40,000 AMOUNT IN RESPECT OF ENTRY DT. 26-10-2004 FOR RS.100000/- RECEIVED ON SUNDAY . SATYANARAYAN HEDA 21/12/04 50,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C. SHANKAR SONAWANE 1/1/05 5,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S . 153C.RETIRED PERSON. SHASHI HINGE 15/4/04 68,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. THE A.O. HAS TAXED HE AMOUNT OF RS.50,000/- AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 53C.RETIRED PERSON. SHEETAL Y MAHURKAR 6/12/04 70,000 HOUSEWIFE. SHIVAJI T. PATIL 27/4/04 41,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. SHIVAJI V. PAWAR 9/1/05 4,00,000 RETIRED PERSON. AMOUNT RECEIVED ON SUNDAY. SEEMA HINGE 16/11/04 4/12/04 62,000 30,000 SERVICE. THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C. SOMNATH VADGE 6/12/04 6/12/04 21/11/04 50,000 25,000 5,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C.IN RESPECT OF AMOUNT RECD.RS.5,000/- SAME IS RECEIVED ON SUNDAY. SONU U. CHAUDHARI 13/12/04 13/1/05 18,000 THE LENDER IS AGRICULTURIST, LIKE THE 17,000 ASSESSEE'S H.U.F .AMOUNT OF RS. 17,000 /- ALREADY TAXED AS UNEXPLAINED CASH CREDIT IN ASSESSMENT PROCEEDINGS. IN RESPECT OF AMOUNT OF RS.18,000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED, BEING AMOUNT LESS THAN RS.20000/-. SUBHASH KANKREJ SIR 1/1/05 1,00,000 20,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S . 153C. IN RESPECT OF AMOUNT UP TO RS.20000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269 SS RESULTED. SUBHASH K. AGNIHOTRI 1/11/04 20,000 PENSIONER. THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S. 153C. IN RESPECT OF AMOUNT UPTO RS.20000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISION S OF SECTION 269SS RESULTED. SANJAY PUNEKAR 7/1/05 3,00,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F.AMOUNT ALREADY TAXED AS UNEXPLAINED CASH CREDIT IN ASSESSMENT PROCEEDINGS. SUNITA A. DESALE 23/12/04 1,60,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. IS RESIDING AT KALWADI VILLAGE. 22 SUREKHA KSHIRSAGAR 12/12/04 2/12/04 17,000 7,000 AMOUNT RS.L7000/- RECEIVED ON SUNDAY. AMOUNT ALREADY TAXED AS UNEXPLAINED CASH CREDIT IN ASSESSMENT PROCEEDINGS. SUREKHA N. PATIL 1/12/04 90,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. AMOUNT RS.92,500/-ALREADY TAXED AS UNEXPLAINED CASH CREDIT IN ASSESSMENT PROCEEDINGS. SURESH AHIRE 1/1/05 2,45,000 TEACHER. SURESH B. GARUD 12/1/05 24/1/05 14/1/05 50,000 30,000 20,000 TEACHER. IN RESPECT OF AMOUNT UP TO RS.20000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. SURESH YEOLA 1/12/04 12,00,000 AS PER AFFIDAVIT SUBMITTED AMOUNT BELONGS TO TOTAL 9 PERSONS. OUT OF THAT TWO ARE HOUSEWIVES, HAVING NO OTHER INCOME. SUWALAL BAFANA 24/7/04 50,000 AMOUNT ALREADY TAXED AS UNEXPLAINED CASH CREDIT IN ASSESSMENT PROCEEDINGS. , TARABAI WANKHEDE 21/1/05 30,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. SHE IS HOUSEWIFE. TATYA EKNATH 12/12/04 6/12/04 14/12/04 25/12/04 25/12/04 24/12/04 50,000 1,00,000 1,00,000 1,50,000 2,00,000 1,80,000 IN RESPECT ENTRY DTD. 12-12-2004 FOR RS.50,000/- AMOUNT RECEIVED ON SUNDAY. AS PER AFFIDAVIT SUBMITTED AMOUNT BELONGS TO SHRI RAJENDRA VLAHAJAN , AGRICULTURISTS, RESIDING AT LOHNER,TAL. BAGLAN ,DIST.NASHIK. T.S. PAWAR 4/9/04 30,000 SHE IS WIFE OF LATE SHRI SHIVAJI R. PAWAR, FAMILY MEMBER. AMOUNT ALREADY TAXED AS UNEXPLAINED CASH CREDIT IN ASSESSMENT PROCEEDINGS. TUSHAR VADGE 19/12/04 30/11/04 23/11/04 50,000 30,000 10,000 ENTRY AMOUNT OF RS.50,000/- ACCEPTANCE OF AMOUNT IS ON SUNDAY .IN RESPECT OF AMOUNT OF RS.10,000/- AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. USHA G. WANI 1/1/05 50,000 AMOUNT ALREADY TAXED AS UNEXPLAINED CASH CREDIT IN ASSESSMENT PROCEEDINGS. VAISHALI G. SONJE 20/12/04 27/12/04 27/12/04 14/12/04 27/1/05 1/10/04 1/12/04 1 8,000 12,000 5,000 30,000 35,000 24,000 2,000 IN RESPECT OF AMOUNT UP TO RS.20,000/-AS HELD BY RAJASTHAN HIGH COURT AND VARIOUS OTHER COURTS, NO CONTRAVENTION OF PROVISIONS OF SECTION 269SS RESULTED. VIJAY A. YEOLA 17/10/04 90,000 AMOUNT ACCEPTED ON SUNDAY. VIJAY BHANDARKAR 7/12/04 17/12/04 1,10,000 1,00,000 HE IS RESIDING AT KALWADI VILLAGE. VIJAY K. AGNIHOTRI 23/12/04 29,000 THE A.O. HAS TAXED THE AMOUNT AS UNEXPLAINED CASH CREDIT IN ASSESSMENT ORDER PASSED U/S. 143(3) R.W.S . 153C. VIJAYA W. PATWARDHAN 5/12/04 31,000 AMOUNT ACCEPTED ON SUNDAY. VISHWANATH A. JOSHI 1/1/05 26/12/04 75,000 25,000 AMOUNT OF RS.25000/-RECEIVED ON SUNDAY. V.T. WANI SIR 15/12/04 2,00,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. AS WELL HE IS GETTING PENSION INCOME ALSO. 23 WAMAN R. SHINDE 21/9/04 24/9/04 23/9/04 20/9/04 1,00,000 70,000 80,000 1,00,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. IS RESIDING AT VADGAON VILLAGE ,WHERE NO BANKING FACILITIES ARE AVAILABLE. YAMUNABAI BHOSALE 1/1/05 4,00,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. YASHWANT B. GAIKWAD. 2/11/04 4,00,000 THE LENDER IS AGRICULTURIST, LIKE THE ASSESSEE'S H.U.F. 16.2 REFERRING TO THE ABOVE TABLE, HE SUBMITTED THA T PENALTY HAS BEEN LEVIED ON ACCOUNT OF CASH LOAN OF RS.20,000/- EACH ACCEPTED FROM SMT. ASHA BAHALKAR, SHRI BALU DANDAGAVHAL, SMT. KAMALABA I K. PATIL, SHRI NARENDRA MAHARAJ, SMT. NIRMALA G. PATIL, SHRI PARUL J. DOSHI, SHRI SUBHASH AGNIHOTRI. THEREFORE, IN VIEW OF THE DECIS ION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF MADHUKAR D. PAWAR (SUPRA) NO PENALTY U/S.271D IS LEVIABLE ON THESE AMOUNTS. 16.3 REFERRING TO THE ABOVE TABLE, HE SUBMITTED THA T IN THE FOLLOWING CASES THE LENDERS ARE AGRICULTURISTS AND WERE NOT H AVING BANK ACCOUNTS AT THEIR RESPECTIVE VILLAGES. THEREFORE, THERE WAS RE ASONABLE CAUSE ON THE PART OF THE ASSESSEE FOR ACCEPTING CASH LOAN FROM T HE ABOVE LENDERS AND THEREFORE NO PENALTY U/S.271D IS LEVIABLE. 1. SHRI ANANT P. MORE RS.26,000/- 2. SHRI ANJANABAI CHAUDHARI RS.25,000/- 3. SHRI BAIJABAI P. DEORE RS.50,000/- HE HOWEVER SUBMITTED THAT HE HAS NO OBJECTION IF TH E ABOVE ISSUE IS RESTORED TO THE FILE OF THE AO WITH A DIRECTION TO VERIFY AND AFTER BEING SATISFIED THAT THEY ARE AGRICULTURISTS AND WERE NOT HAVING BANKING FACILITY IN THEIR VILLAGES DELETE THE PENALTY U/S.271D ON ACCOU NT OF REASONABLE CAUSE. 24 16.4 SO FAR AS AMOUNT OF RS.1,75,000/- OBTAINED IN CASH ON 01-02-005 FROM SHRI R.B. SURYAWANSHI SIR IS CONCERNED, HE SUB MITTED THAT THE ABOVE AMOUNT AS PER THE SEIZED DIARY IS ONLY RS.1 LAKH AN D NOT RS.1,75,000/- AS HELD BY THE AO. THEREFORE, THIS ISSUE MAY BE RESTO RED TO THE FILE OF THE AO FOR VERIFICATION. SO FAR AS THE AMOUNT OF RS.50, 000/- RECEIVED FROM SHRI SATYANARAYANA HEDE IS CONCERNED HE SUBMITTED T HAT THE CIT(A) HAS ALREADY DELETED THE SAME. 16.5 SO FAR AS THE VARIOUS OTHER AMOUNTS AS APPEARI NG IN THE TABLE FILED BY HIM HE SUBMITTED THAT IN CERTAIN OTHER CASES THE LENDERS ARE AGRICULTURISTS. THEREFORE, A LENIENT VIEW SHOULD B E TAKEN AND NO PENALTY U/S.271D SHOULD BE LEVIED. REFERRING TO THE SAID CH ART HE SUBMITTED THAT IN CERTAIN CASES EVEN WHEN THE AMOUNT OF CASH LOAN IS LESS THAN RS.20,000/- THE AO HAS LEVIED PENALTY AND THEREFORE HE MAY BE D IRECTED TO CANCEL THE PENALTY ON SUCH AMOUNT. REFERRING TO THE CASE OF S HRI BALKRISHNA NAGMOTI WHERE LOAN OF RS.15,000/- TAKEN ON 21-12-2004 AND S HRI RAJASBAI TRAMBAK WHERE LOAN OF RS.10,000/- TAKEN ON 12-12-20 04 AND RS.5,000/- TAKEN FROM SHRI SHANKAR SONWANE ON 01-01-2005 HE SU BMITTED THAT NARRATION FOR ACCEPTING THE LOAN FROM THE ABOVE PER SONS HAS ALREADY BEEN EXPLAINED IN THE REMARKS COLUMN AND THE TABLE FILED WHERE LOAN IS ADMITTEDLY LESS THAN RS.20,000/- IN EACH CASE. HE ACCORDINGLY SUBMITTED THAT APPROPRIATE DECISION MAY BE TAKEN. 17. THE LD. DEPARTMENTAL REPRESENTATIVE ON THE OTH ER HAND HEAVILY RELIED ON THE ORDER OF THE CIT(A). 25 18. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES, PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A) AND THE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE HAVE ALSO CONSIDERED THE VARIOUS DECISIONS CITED BEFORE US. SO FAR AS THE AMOUNT OF RS.20,000/- EACH RECEIVED FROM SHRI ASHA BAHALKAR, BALU DANDAGAVHAL , SMT. KAMALABAI K. PATIL, SHRI NARENDRA MAHARAJ, SHRI NIRMALA G. PA TIL, SHRI PRAUL J. DOSHI AND SHRI SUBHASH AGNIHOTRI ARE CONCERNED THE PENALT Y U/S.271D IS NOT LEVIABLE ON THESE AMOUNTS IN VIEW OF THE DECISION O F THE HONBLE BOMBAY HIGH COURT IN THE CASE OF MADHUKAR D. PAWAR (SUPRA) . WE HAVE ALREADY DISCUSSED THIS ISSUE AT PARA NO.10 OF THE IMPUGNED ORDER WHILE DECIDING ITA NO.341/PN/2011 (A.Y. 2003-04). FOLLOWING THE S AME REASONINGS, PENALTY U/S.271D ON THESE AMOUNTS ARE DIRECTED TO B E DELETED. 18.1 SIMILARLY, IN THE FOLLOWING CASES, THE ASSESSE E HAS SUBMITTED THAT THE LENDERS ARE AGRICULTURISTS AND WERE NOT HAVING BANK ING FACILITY IN THEIR RESPECTIVE VILLAGES : 1. SHRI ANANT P. MORE RS.26,000/- 2. SHRI ANJANABAI CHAUDHARI RS.25,000/- 3. SHRI BAIJABAI P. DEORE RS.50,000/- WE THEREFORE RESTORE THE ISSUE TO THE FILE OF THE A O WITH A DIRECTION TO DECIDE THE ISSUE AFRESH IN THE CASE OF THE ABOVE PE RSONS AND DECIDE THE ISSUE AS PER FACT AND LAW AFTER GIVING DUE OPPORTUN ITY OF BEING HEARD TO THE ASSESSEE. IN CASE, THE CONTENTION OF THE ASSESSEE THAT THEY ARE AGRICULTURISTS AND WERE NOT HAVING BANKING FACILITIES IN THEIR RES PECTIVE VILLAGES IS CORRECT, THEN THERE EXISTS SOME REASONABLE CAUSE FO R ACCEPTING CASH LOANS AND THE AO AFTER CONSIDERING THE SAME SHALL CANCEL THE PENALTY U/S.271D ON THESE AMOUNTS. 26 18.2 AS REGARDS THE AMOUNT OF RS.1,75,000/- OBTAINE D FROM SHRI R.B. SURYAWANSHI SIR ON 01-02-2005 IS CONCERNED, IT IS T HE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE AMOUNT IS ONL Y RS.1 LAKH AS PER THE SEIZED DIARY. WE THEREFORE RESTORE THIS ISSUE TO T HE FILE OF THE AO WITH A DIRECTION TO VERIFY THE SEIZED DIARY AND IF THE AMO UNT IS RS.1 LAKH ONLY, THEN THE AO IS DIRECTED TO RESTRICT THE PENALTY ON THIS AMOUNT OF RS. 1 LAKH AS AGAINST RS.1,75,000/-. SO FAR AS PENALTY LEVIED ON CERTAIN CASH LOANS NOT EXCEEDING RS.20,000/- THE AO IS DIRECTED TO DELETE THE PENALTY, IF AT ALL PENALTY HAS BEEN LEVIED ON SUCH AMOUNTS. THE AO IS ALSO DIRECTED TO DELETE THE PENALTY IF ANY CASH LOAN HAS BEEN TREATE D AS CASH CREDIT AND ADDED U/S.68 OF THE I.T. ACT WHICH HAS BEEN CONFIRM ED IN APPEAL BY LD.CIT(A) SINCE IN OUR OPINION PENALTY U/S.271D IS NOT LEVIABLE IN CASE OF ADDITION U/S.68 OF THE I.T. ACT. ALTHOUGH THE LD.C IT(A) HAS ALREADY DELETED PENALTY U/S.271D WHERE THE LOAN HAS BEEN TR EATED AS CASH CREDIT U/S.68 OF THE I.T. ACT, STILL THE ASSESSEE IN THE C HART FILED HAS TAKEN SUCH PLEA. THE AO IS THEREFORE DIRECTED TO VERIFY THE S AME AND DELETE THE PENALTY, IF ANY, LEVIED ON SUCH AMOUNTS TREATED AS CASH CREDIT U/S.68 AND CONFIRMED BY THE CIT(A) IN QUANTUM APPEAL 18.3 IN CASE OF OTHER AMOUNTS IN ABSENCE OF ANY REA SONABLE CAUSE FOR ACCEPTING SUCH CASH LOANS IN EXCESS OF RS.20,000/-, THE ASSESSEE, IN OUR OPINION, HAS VIOLATED THE PROVISIONS OF SECTION 271 D OF THE I.T. ACT., THEREFORE, THE ORDER OF THE LD.CIT(A) LEVYING PENAL TY ON THESE AMOUNTS IS UPHELD. 27 19. IN THE RESULT, ALL THE 3 APPEALS FILED BY THE A SSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 18-03-2015. SD/- SD/- (SUSHMA CHOWLA) (R.K. P ANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER SATISH PUNE, DATED 18 TH MARCH, 2015 COPY OF THE ORDER IS FORWARDED TO: 1. THE ASSESSEE 2. THE DEPARTMENT 3. THE CIT(A)-I, NASHIK 4. THE CIT-I, NASHIK 5. THE DR A BENCH, PUNE. 6. GUARD FILE BY ORDER // TRUE COPY // ASSISTANT REGISTRAR, INCOME TAX APPELLATE T RIBUNAL, PUNE