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2010 (10) TMI 734 - ITAT, NEW DELHIPenalty u/s 271E - Scrutiny - assessee is a registered partnership firm having two partners, and they engaged in the manufacture of garments and their export - AO issued notice u/s 271D/271E of the Income Tax Act inviting explanation of the assessee why penalty under these sections be not imposed for making payments in contravention of section 269SS and 269T of the Income Tax Act - A bare perusal of sections 269SS and 269ST would reveal that for visiting any assessee with penalty for violation of these two sections there should be default at the end of an assessee that he should have accepted the loans or deposits otherwise then by an account payee cheque or account payee bank draft - Since no case for initiation of penalty u/s 271E is made out therefore we do not deem it necessary to go into the facts whether the order was passed within limitation or the proceedings were initiated with limitation - Appeal is dismissed
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