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2016 (6) TMI 694 - AT - Income TaxPenalty u/s 271E - violation of provisions of Section 269 T - Held that:- We find that the genuineness of repayments of depositors has not been doubted by the authorities below and the repayments of depositors in view of hardships of depositors is a reasonable cause for failure to comply with any provisions of the Act. The purpose of introduction of the penal provisions in the legislature were to curb black money and benami transactions. The purpose of legislature can never be to impose penalty in case of genuine transactions. The penal provisions of section 271D and 271E confer a discretion on the authorities to levy or not to levy penalty and such discretion needs to be exercised with wisdom and in a fair and just manner. Even if the relevant provisions of law prescribe levy of a minimum penalty, it does not mean that penalty must necessarily be imposed in every case falling within Sections 269SS and 269T. Even if the minimum penalty is prescribed the higher authorities will be justified in refusing to impose penalty when there is a technical breach or violation of the provisions of the Act - Decided in favour of assessee
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