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2020 (2) TMI 1093 - AT - Income TaxPenalty u/s 271E - contravention of provisions of S. 269T - HELD THAT:- Provision of 269T and 269SS has been enacted in order to prevent the increase in black money and to stop tax evasion. The intention of the legislature was not to cover the bonafide and genuine transaction wherein the AO himself was satisfied and no tax evasion/use of the black money was involved. Also observe that a genuine transaction made in an emergency, does not attract penalty u/s 271E. It has been held that the amount paid by the assessee in cash to meet with his urgent need of money, was a reasonable cause in terms of Sec 273B. The funds were needed for an urgent requirement made at the hospital at Ahmedabad towards the treatment of mother. The assessee therefore, paid the amount through different family members, who are close relative of the partners of the firm Shri Sampatraj Lunawat and Shri Mahendra Lunawat to meet with urgent need of medical treatment expenditure in emergency and hence does not attract penalty. No justification for the penalty so imposed U/s 271E - Decided in favour of assessee.
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