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2017 (5) TMI 1693 - HC - Income TaxPenalty levied u/s. 271D - violation of provisions of Section 269SS - whether transfer by way of book entries was bonafide and was not to evade taxes specifically when accordingly to section 269SS deposit/loan of money cannot be accepted otherwise then by an account payee cheque/draft? - ITAT deleted penalty - HELD THAT:- Taking into consideration the observations made by the CIT(A) and the Tribunal, we are are of the considered opinion that Section 269SS of the Income Tax Act, was introduced in statute and taking into consideration the applicability of the provisions, the Tribunal has discussed liability recorded in the books of account by way of journal entries i.e. crediting the amount of party to whom monies payable and debiting the account of a party from whom monies are receivable in the books of account is in contravention of provisions of Section 269T of the Act but in that case also the penalty was held to be not leviable for the reason that transaction was bona fide and was not to evade taxes. In assessee’s case also, the transaction is bonafide and it was not to evade taxes. No infirmity in the order of the ld. CIT (A) which is sustained on this issue. Thus the solitary ground of the Revenue is dismissed.
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