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2018 (7) TMI 1828 - ITAT MUMBAIPenalty imposed u/s.271E and 271D - taking and repayment of loan from the various sister concerns through Journal Entry - Held that:- As decided in case of Ajinath Hi-Tech Builders Pvt. Ltd.[2018 (2) TMI 603 - BOMBAY HIGH COURT] the assessee could not be visited with penalty in respect of the period prior to 12.06.2012, the day on which the decision in CIT v. Triumph International Finance (I) Ltd. (2012 (6) TMI 358 - BOMBAY HIGH COURT) was pronounced. In light of this, it can safely be concluded that the assessee being under a bona fide belief, could not be visited with penalties u/ss. 271D and 271E of the Act. In any case, in light of this binding decision, there is no requirement to establish reasonable cause in respect of each and every entry as canvassed by the Id. DR. The reasonable cause in respect of all the entries is the bona fide belief of the assessee that there was no violation of any provision of the Act. In view of the above, we observe that the case of the assessee is squarely covered by the exception carved out in the judgment of the Hon'ble Bombay High Court in CIT v. Triumph International Finance (I) Ltd.(2012 (6) TMI 358 - BOMBAY HIGH COURT). Accordingly, both the penalties were not exigible in the present case as the assessee was under a bona fide belief and there was no contravention as per the law prevailing as on the date of passing the journal entries. The orders of the CIT (A), therefore, do not call for any interference. - decided in favour of assessee
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