Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1926 - ITAT MUMBAIPenalty u/s 271D & 271E - accepting & repayment in cash loan/ deposit/ transactions made through journal entries in excess of ₹20,000/-in violation of the provisions of section 269SS & 269T - HELD THAT:- In view of the judgement of Lodha developers Pvt. Ltd [2018 (2) TMI 603 - BOMBAY HIGH COURT] and case of Triumph International Finance (I) Ltd [2012 (6) TMI 358 - BOMBAY HIGH COURT] wherein it is held that where loan / deposit has been repaid by day to day accounts of the parties through journal entries, it must be held that the assessee has committed default for the contravention of provisions of section 269SS or 269T as the case may be. But the Hon’ble Bombay High Court has clarified the position with effect from 12.06.2012 date when the judgement was pronounced and prior the date of decision of Hon’ble Bombay High Court in the case of Triumph International Finance (I) Ltd [2012 (6) TMI 358 - BOMBAY HIGH COURT]there was a reasonable cause for the assessee to receive deposit of loan or repayment of the same through journal entries. Accordingly, the assessee’s case is squarely falls under a reasonable cause under section 273B of the Act and therefore, in our view, penalties levied by the addl. CIT under section 271D and 271E of the Act has rightly been deleted by CIT(A). Hence, we confirm the order of CIT(A) and this issue of Revenue’s appeal is dismissed. - Decided in favour of assessee.
|