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| The Tax Publishers2020 TaxPub(DT) 4255 (Ahd-Trib) INCOME TAX ACT, 1961
Section 271E
Penalty imposed under section 271E on assessee for contravention of provisions of section 269T was liable to be set-aside and quashed as similar payment in cash had been made in the earlier year which had not been disputed by the Revenue as presumption of bona fide and good faith would, arise in favour of the assessee.
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Penalty under section 271E - Contravention of section 269T - Presumption of bona fide and good faith -
Assessee paid a sum in contravention of provisions of section 269T to four persons and consequently penal action was undertaken under section 271E. Held: Similar payment in cash had been made in the earlier year which had not been disputed by the Revenue. The presumption of bona fide and good faith would, thus, arise in favour of the assessee. Further, 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 was consistent and emanating from the orders of the lower authorities. On merits, the case of the assessee deserves to be accepted. Hence, the penalty imposed under section 271E was set aside and quashed.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2012-13
IN THE ITAT, AHMEDABAD BENCH
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