2011 (9) TMI 189

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..... s justified in deleting the penalty levied under sections 271D/271E r/w sections 269SS and 269T of the Income Tax Act. 1961. 2. The Assessment Years involved herein are A.Y. 1996-1997 to 2002-2002. 3. The Assessee is an individual and is interalia engaged in the business of money lending. On 14.12.2000, a search and seizure action was conducted at the residential as well as business premises of .....

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..... sections 271D and 271E of the Income Tax Act, 1961. 5. On appeals filed by the Assessee, the CIT(A) upheld the penalty imposed under sections 271D and 271E of the Income Tax Act, 1961, however directed the Assessing Officer to compute the penalty only on the amount exceeding Rs.20,000/. Challenging the aforesaid order, both the Assessee as also the Revenue filed appeals before the ITAT. 6. The .....

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..... sections 271D and 271E of the Act, the ITAT by the impugned order dt.25.2.2011 cancelled the penalties and allowed the appeals filed by the Assessee. Challenging the aforesaid order, the Revenue has filed these appeals. 8. Based on the decision of the CIT(A), it is contended by the counsel for the Revenue that once it is established that the Assessee has accepted or taken loans and deposits in cas .....

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..... the Assessee was not professionally managed nor professionally advised. (d) That the enquiry conducted by the Revenue in the block assessment proceedings subsequent to the search and seizure action revealed that all the transactions in question were genuine transactions. 10. The Tribunal has further held that when the transactions are genuine, then the violation of sections 269SS and 269T can at .....

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..... out making any additions in the block assessment order. Moreover, s.273B of the Income Tax Act, 1961 provides that if there is a genuine and bonafide transaction then, the Assessing Officer is vested with a discretionary power not to impose penalty. Therefore, in the facts and circumstances of the present case, the decision of the ITAT in holding that the Assessee has shown reasonable cause for no .....

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