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2019 (7) TMI 1609 - ITAT MUMBAIPenalty u/s 271D - accepting in cash loan/ deposit/ transactions made through journal entries in excess of ₹20,000/-in violation of the provisions of section 269SS - reasonable cause under section 273B - CIT-A deleted addition as genuineness of transactions made through journal entries is not in doubt and consequently there is a reasonable cause for accepting in cash loan/ deposit/ transactions made through journal entries in excess of ₹20,000/- - HELD THAT:- In view of the judgement of Lodha developers Pvt. Ltd [2018 (2) TMI 603 - BOMBAY HIGH COURT] and Triumph International Finance (I) Ltd [2012 (6) TMI 358 - BOMBAY HIGH COURT] wherein it is held that where loan / deposit has been repaid by day to day accounts of the parties through journal entries, it must be held that the assessee has committed default for the contravention of provisions of section 269SS or 269T as the case may be. But the Hon’ble Bombay High Court has clarified the position with effect from 12.06.2012 date when the judgement was pronounced and prior the date of decision of Hon’ble Bombay High Court in the case of Triumph International Finance (I) Ltd (supra) there was a reasonable cause for the assessee to receive deposit of loan or repayment of the same through journal entries. Accordingly, the assessee’s case is squarely falls under a reasonable cause under section 273B of the Act and therefore, in our view, penalty levied by the addl. CIT under section 271D of the Act has rightly been deleted by CIT(A). - Decided against revenue.
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