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2016 (11) TMI 876 - ITAT MUMBAIPenalty u/s 271E - Held that:- The assessee company has advanced a sum of ₹ 15 lakh in assessment year 2004-2005 in its normal course of business, which could not materialize. Shri R.Bhaskaran repaid this advance, but it was paid in the name of one of the Directors of the company Shri Om Prakash Kanungo through account payee cheque, who in turn returned this amount to the assessee-company through journal voucher entry. Thus the repayment is made by account payee cheque although in the name of one of the Directors of the assessee-company, Shri Om Prakash Kanungo by Shri R.Bhaskaran. We find that there is a reasonable cause rather the payment is through account payee cheque. In our view, there is no violation of provisions of section 269T and consequential penalty u/s 271E is without any basis. We delete the penalty and allow the appeal of the assessee.
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