IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN MONDAY, THE 4TH OCTOBER 2010 / 12TH ASWINA 1932 ITA.No. 1490 of 2009() ---------------------- ITA.152/COCH/2007 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/RESPONDENT: -------------------- THE COMMISSIONER OF INCOME TAX, KOZHIKODE. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/APPELLANT: --------------- M/S.N.B.JAYAKRISHNAN, 1/313, SHEETAL, BEYPORE.P.O. KOZHIKODE-673 015. ADV. SRI.ABRAHAM GEORGE JACOB THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 04/10/2010, ALONG WITH ITA NO.1496 OF 2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & K.SURENDRA MOHAN, JJ. .................................................................... I.T. Appeal Nos.1490 & 1496 of 2009 .................................................................... Dated this the 4th day of October, 2010. JUDGMENT Ramachandran Nair, J. These are departmental appeals filed challenging the orders of the Tribunal cancelling penalty levied under Section 271D of the Income Tax Act. We have heard Standing Counsel appearing for the appellant and counsel appearing for the assessee. 2. After hearing both sides and after going through the orders of the Tribunal, we find that the Tribunal cancelled penalty because loans, though taken in violation of Section 269SS, were accepted as genuine by the department. Further, it is the finding of the Tribunal that exigencies of business of the respondent-assessee which is a civil construction contractor demanded cash borrowals mainly to meet payment to the labourers. We do not find any substantial question of 2 law arising from the orders of the Tribunal which is rendered based on the findings of fact. Consequently appeals are dismissed. C.N.RAMACHANDRAN NAIR Judge K.SURENDRA MOHAN Judge pms