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2018 (10) TMI 1927 - AT - Income TaxPenalty u/s 271D/271E - genuineness of the transaction journal entries - Contravention of provisions of section 269SS as assessee failed to establish the compelling reasons or genuine business constraints or reasonable cause for having transactions in respect of each and every journal entry with its group concerns - CIT-A deleted the addition - HELD THAT:- The decision of this Court in Triumph International Finance [2012 (6) TMI 358 - BOMBAY HIGH COURT] has only clarified / stated the position as always existing in law, the receiving of deposits / loans through journal entries would certainly be hit by Section 269SS of the Act. Nevertheless, prior to the decision of this Court in Triumph International Finance (supra), there was reasonable cause for respondents to receive deposit / loan through journal entries. This noncompliance with Section 269SS of the Act would certainly be a reasonable cause under Section 273B of the Act for non-imposition of penalty under Section 271D. In the instant case the period during which the journal entries were made by the assessee was in the previous year 2011-12 relevant to the assessment year 2012-13. The decision in the case of Triumph International Finance (I) Ltd.(supra) was rendered by the Hon’ble Bombay High Court on 12.06.2012. Appeal dismissed.
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