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2015 (12) TMI 1544 - AT - Income TaxPenalty u/s 271E - repayment of fixed deposits of various depositors at various branches of the bank - Held that:- 271E confer discretion on authorities to levy or not to levy penalty and such discretion needs to be exercised with wisdom and in a fare and just manner. Even if the relevant provisions of law prescribe the levy of penalty, it does not mean that penalty must necessarily be imposed in every case falling within the provisions of section 269T. Even if penalties are prescribed the higher authorities will be justified in refusing to impose penalty when there is a technical breach of provisions of the Act In the present cases, the Department has not doubted the genuineness of the transactions and has imposed & upheld the penalties holding that the reasons for repayment as submitted by assessee did not constitute reasonable cause. We further find that in different years the violation has been made by different branches of the Bank & the violation has not been repeated. In Asst. Year 2008-09, the violation was by Bulbul Nowgam, L.D. Hospital & Islamia College Branches & in Asst. Year 2007-08, the violation was by Lal Mandi Branch whereas in Asst. Year 2005-06, the violation was by Lal Bazar Branch. We further find that learned CIT(A) himself in Asst. Year 2006-07 has deleted the penalty imposed by Assessing Officer under similar facts circumstances. We further find that no mens rea is involved as the violation is not intentional. Therefore, in view of the above facts and circumstances and in view of the legislature intention of introducing these penal provisions & also in view of the precedents relied upon by learned AR, we hold that penalties are not imposable in these cases. - Decided in favour of assessee
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