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2015 (5) TMI 470 - AT - Income TaxPenalty levied under section 271D & 271E - Repayment of loan by any other mode except by way of account payee cheque/draft - transfer of amount by way of Journal entries. - Held that:- In the case in hand, the transactions were carried out between the director of the assessee company and the company itself. All the loans were originally received by the assessee company through account payee cheque but due to the reasons explained by the assessee, some amounts were transferred to the account of Mr. R.R. Chaturvedi, which were passed on to the assessee’s account by way of journal entries. It is not the case of the Revenue that the impugned transactions constitute unaccounted money or that the same were not bonafide or not genuine. The lower authorities have not controverted the explanations given by the assessee. The Revenue has not suffered any loss and there was no attempt of any money laundering or evasion of tax or concealment of income. Respectfully following the finding of the Tribunal given in almost similar circumstances in Lodha Builders Pvt. Ltd. vs. ACIT [2014 (8) TMI 872 - ITAT MUMBAI], we hold that in the case in hand, the explanation put forth by the assessee-company, falls within the scope of phrase "reasonable cause" as provided under Section 273B of the Income Tax Act, 1961. So, in view of our observations made above, the penalty imposed upon the assessee by the AO and further confirmed by the CIT(A) is hereby ordered to be deleted. - Decided in favour of assessee.
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