Penalty

Decision: Held by the Hon`ble Court that, the A.O. must be satisfied, not arbitrarily but judiciously. In the facts and circumstances of the case, penalty levied on technical mistake committed by the assessee and due to this there is no loss of revenue, shall be harsh and cannot be sustained in law. Therefore penalty levied under section 271 D due to accepting loan not according to modes defined in section 269SS but having reasonable cause, was not proper and justified