Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 91 - AT - Income TaxLevy of penalty u/s. 271E - violation of provisions of Section 269T - assessment completed u/s. 143(3)on returned income - Assessing Officer has held that the assessee’s books of account are audited and the assessee was assisted by a tax consultant and therefore, the ‘bonafide belief’ is not believable. - technical breach of provisions - HELD THAT:- First two persons are the Directors of the company and their identity is proved and the genuineness of the said payment is also not doubted by the Assessing Officer. As regards the other two parties, we find that assessee had taken vehicle loans and the repayment was made in cash and therefore, the genuineness of these transactions also could not be doubted. The Co-ordinate Bench of the Tribunal in the case of Dillu Cine Enterprises (P) Ltd., Vs. Addl. CIT [2001 (9) TMI 248 - ITAT HYDERABAD-A] has considered the issue of penalty leviable for technical breach of provisions where the transactions are genuine, and has held that when the transactions are not for evasion of tax/concealment of income and bonafide belief of the assessee was that it could have made the payment in cash, penalty is not automatic and the penalty levied there under u/s. 271D of the Act is not valid - Thus we are inclined to accept the contentions of assessee of ‘bonafide belief’ for repayment of loans in cash and the penalty u/s. 271E of the Act is deleted. Also see M/S. MUTHOOT FINANCIERS, NEW DELHI [2015 (2) TMI 212 - DELHI HIGH COURT]- Decided in favour of assessee.
|