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2020 (12) TMI 45 - ITAT MUMBAIPenalty imposed u/s 271D and 271E - availing and re–paying loan otherwise than by an account payee cheque/demand draft in violation of the provisions contained under section 269SS and 269T - reasonable cause for the assessee to receive and re–pay loan through journal entries - HELD THAT:- Hon'ble Jurisdictional High Court in CIT v/s Ajitnath High–Tech Builders Pvt. Ltd. & Ors., [2018 (2) TMI 603 - BOMBAY HIGH COURT] held that, since, prior to the decision in Triumph International Finance India Ltd. [ 2012 (6) TMI 358 - BOMBAY HIGH COURT] which was rendered on 12th June 2012, there was reasonable cause for the assessee to receive and re–pay loan through journal entries because of various decisions of the Tribunal holding that receipt and re–payment of loan through journal entries would not come within the purview of section 269SS and 269T of the Act, the non–compliance to the provisions of section 269SS and 269T of the Act would certainly be a reasonable cause under section 273B of the Act for non–imposition of penalty under section 271D and 271E. In the facts of the present appeal, admittedly, the availing and re–payment of loan through book entries was prior to 12th June 2012. Therefore non–compliance to the provisions of section 269SS and 269T of the Act was due to a reasonable cause. Hence, imposition of penalty under section 271D and 271E of the Act in the facts of the present appeals is unjustified. Accordingly, we delete the penalty imposed under section 271D and 271E - Decided in favour of assessee.
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