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2022 (12) TMI 1079 - ITAT MUMBAIPenalty u/s. 271D - assessee has repaid loans/ deposits from various sister concerns through journal entries, i.e., otherwise than account payee cheques/draft, thereby violating the provisions of section 269T - assessee has not shown the reasonable cause u/s. 273B of the Act for entering into such transactions through journal entries - CIT-A deleted the penalty levy - HELD THAT:- As decided in assessee’s group company i.e. Lodha Builder Pvt. Ltd [2021 (12) TMI 1174 - ITAT MUMBAI] there is no adverse finding by the AO in the regular assessment. AO has not made out in the -assessment that any of the impugned transactions is aimed at non commercial reasons and outside the normal business’ operations? As such, the provisions of ss. 269SS and 269T of the Act shall not be attracted where there is no involvement of the ‘money’. Therefore, in the fact of the present case, in our opinion, though the assessee has violated the provisions of ss. 269SS/269T of the Act in respect of journal entries, the assessee has shown reasonable cause and, therefore, the penalty imposed u/s 271D/271E of the Act are not sustainable. Regarding an amount of 'money' said to have been paid in violation of the said provisions, the same needs to be deleted. Appeal filed by the Revenue is dismissed.
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