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2022 (1) TMI 76 - AT - Income TaxLevy of penalty u/s.271D/271E - transaction by passing a journal entry - proof of reasonable cause u/s 273B - HELD THAT:- Assessee has given complete explanation of the transactions before the ld. Addl. CIT by way of detailed explanation together with the purpose of passing a journal entry including relevant journal entry passed in the books of accounts of the assessee company. The same are not reiterated for the sake of brevity herein as they are already forming part of the records. Hence it could be safely concluded that these entries were passed out of business constraints and exigencies and for administrative convenience with no malafide intent to evade payment of tax. In our considered opinion, this business constraint and exigency and administrative convenience itself constitutes reasonable cause within the meaning of section 273B of the Act . Hence no penalty u/s 271D and 271E of the Act could be invoked for the same As in the case of Triumph International . [2012 (6) TMI 358 - BOMBAY HIGH COURT] still the observations made by the Hon‟ble Delhi High Court on the genuineness of the transactions in the ordinary course of business and the element of “reasonable cause‟ thereon, would still remain applicable and would have more persuasive value. In view of our aforesaid observations and respectfully following the aforesaid judicial precedents relied upon hereinabove, we hold that the ld. CIT(A) had rightly held that no penalty u/s.271D/271E of the Act could be levied in respect of transactions. Accordingly, the grounds raised by the Revenue are dismissed.
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