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2020 (9) TMI 467 - AT - Income TaxPenalty u/s 271D and 271E - violation of provision of section 269SS and 269T - Bonafide Belief - as submitted that the assessee is in existence for last many years and filing return of income but no such penalty has been levied in the case of the assessee and it is for the first time violation of the section 269SS/269T has been pointed out in the case of the assessee - HELD THAT:- Belief on the part of the assessee in view of the past history of the case that deposit/repayment by its members in cash is bonafide belief. DR has not controverted the factual finding of the Learned Counsel of the assessee that in subsequent years also no penalty has been initiated/levied in the case of the assessee under section 271D/271E. In the case of CIT Vs Lokhpal Film Exchange (Cinema) [2007 (1) TMI 165 - RAJASTHAN HIGH COURT] held that the assessee had acted bonafidely and its plea that inter se transaction between the partners and the firm were not governed by the provision of section 269SS/269T, was a reasonable explanation and no penalty could be imposed. Considering the bonafide and genuine transaction, reasonable cause in terms of section 273B of the Act, exist in the case of the assessee for not complying with the provision of section 269SS and 269T and, therefore, we cancel the penalty levied in terms of section 271D and 271E of the Act. - Decided in favour of assessee.
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