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2018 (7) TMI 2241 - AT - Income TaxPenalty levied u/s 271D - repayment of loan /deposit by way of journal entries - Proof of bonafide belief - HELD THAT:- The journal entries have been made with the group concern under the bonafide belief that such transaction would not be hit by the provisions of section 269 SS in view of the various judicial decision on this issue, including the decision of Delhi High Court in case of NOIDA Toll Bridge [2003 (1) TMI 46 - DELHI HIGH COURT]and such loan by way of journal entries transaction were undertaken for various commercial reasons like assigning or receivable for operational efficiency, payment on the group concern for squaring up connection, for ease of consolidation of accounts, rectification entries etc. Commissioner (Appeals) after referring the decision of Bombay High Court in Trump International [2012 (6) TMI 358 - BOMBAY HIGH COURT] held that repayment of loan /deposit by way of journal entries was in contravention of provision of section 269SS has been given after the close of financial year 2011-12 relevant to assessment year 2012-13. The learned Commissioner (Appeals) concluded that reasons disclosed by assessee constitute reasonable cause within the meaning of section 273B of the Act; particularly in light of the fact that there is no finding that such transaction was undertaken to evade the tax. The learned Commissioner (Appeals) while considering the contention of assessee also observed that there is no finding that transaction by way of journal entries were not made to evade tax. The finding of the CIT(A) is based upon the decision of Bombay High Court in the assessee’s sister concern case title as CIT Vs AjinathHitech builders Private Limited& others [2018 (2) TMI 603 - BOMBAY HIGH COURT] Accordingly, we are of the view that the CIT(A) has decided the matter of controversy judiciously and correctly which is not liable to be interfere with at this appellate stage. Resultantly, the appeal of the revenue is hereby ordered to be dismissed.
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