The High Court rejected the stay application as non-maintainable on the grounds that (i) Mere fact that a party accepts loans in cash which are otherwise explainable (source is explained) will not absolve a party from the rigors of S. 271D of the Act in the absence of a reasonable cause; (ii) The fact that the Karta of HUF (assessee) had a limited education cannot lead to a presumption that he is ignorant of law (iii) Under S. 260A(7) of the Act, provisions of Civil Procedure Code (‘CPC’) are made applicable and determination of tax payable is in the nature of money decree and same should be paid to successful party and if the assessee finally succeeds it will receive the entire amount with interest. (NM No 1672 of 2017 in ITA No. 171 of 2016, dt. 09/02/2018) (AY. 2005-06)
Shivaji Ramchandra Pawar (HUF) .v. JCIT (2018) 163 DTR 308 (Bom)(HC)
S.260A: Appeal –High Court – Penalty -Stay the proceedings to give effect to the order of Tribunal was rejected – Determination of the tax payable by the assessee is in the nature of money decree and hence should be paid to successful party – If assessee finally succeeds in appeal it would get the amount refunded with interest.[ S.271D ]