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2015 (11) TMI 1121 - AT - Income TaxPenalty u/s 271D and 271E - Held that:- Nothing has been brought on record by the Revenue to show that the assessee as a result of his business and interactions with the department in the earlier years had been made aware that accepting and repaying in cash to sister concerns in order to tide over financial emergencies were in violation of the provision of the Act. In the absence of any such evidence the plea of bonafide belief in the peculiar circumstances cannot be discarded. It is seen that the assessee has consistently canvassed that there was a bonafide belief that the amount taken from the sister concern in cash is not a violation of any provision. Return of loan by cash to the sister concern under a bonafide belief that the transaction with sister concerns is not in violation for similar reasons in the absence of any evidence to the contrary cannot be disbelieved. It is seen that the genuineness of the transactions have not been questioned despite the fact that the group company has been searched accordingly since nothing has been brought on record to canvass that reasonable cause is not constituted appeals of the assessee have to be allowed. Decision rendered in Bhalotia Engineering Works (2004 (8) TMI 66 - JHARKHAND High Court ) is entirely distinguishable on facts the impugned orders are set aside and the penalties imposed in each of these appeal is quashed. - Decided in favour of assessee.
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