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2020 (10) TMI 619 - AT - Income TaxPenalty u/s 271E - breach of provisions of Sec. 269T - HELD THAT:- The assessee has narrated the circumstances in relation to the cash payments to four parties. Assessee has attempted to demonstrate from the ledger account that the outstanding has been carried forward from the earlier years and a part payment was also made in the preceding years as a measure of discharge of liability arising from purchase of tobacco products. Similar payment in cash has been made in the earlier year which has not been disputed by the Revenue. The presumption of bona fide & good faith would, thus, arise in favour of the assessee. Mere nomenclature in a particular manner in a balance sheet will not be conclusive for determination of nature of transaction. The stand of the assessee towards purchase of tobacco is consistent and emanating from the orders of the lower authorities. Are inclined to appreciate the stand of the assessee in affirmative on merits. On merits, the case of the assessee deserves to be accepted. Hence, the penalty imposed u/s 271E by the competent authority (JCIT) is set-aside and quashed. - Decided in favour of assessee.
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