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2015 (8) TMI 461 - AT - Income TaxPenalty imposed under section 271(E) - mode of repayment - loan was actually repaid through account payee cheques but due to a clerical mistake it was wrongly shown as cash payments in the audited books of account - CIT(A) deleted penalty - Held that - Assessee s contention that repayments through cheques were wrongly mentioned as cash payments as a result of clerical mistake is believable because as found by the learned Commissioner of Income-tax (Appeals) withdrawals made from State Bank of India account of M/s. Supriya School of Nursing through cheques were wrongly mentioned in the books of account as cash withdrawals. Therefore on overall examination of facts and materials on record it is very much evident that the repayment of loan by the assessee to Mr. S. S. Prasad and Smt. S. Vijay Kumari were through account payee cheques. Hence there is no violation of provisions contained under section 269T of the Act thereby attracting the penal provision of section 271E. In the aforesaid facts and circumstances we do not find any infirmity in the order of the learned Commissioner of Income-tax (Appeals) in deleting the penalty imposed under section 271E - Decided in favour of assessee.
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