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| The Tax Publishers2020 TaxPub(DT) 5110 (Mum-Trib) INCOME TAX ACT, 1961
Section 271D Section 271E
Admittedly, the availing and repayment of loan through book entries was prior to the decision in Triumph International Finance India Ltd. [(2012) 345 ITR 270 (Bom) : 2012 TaxPub(DT) 2091 (Bom-HC)] which was rendered on 12-6-2012, therefore, non-compliance to the provisions of sections 269SS and 269T would be held as due to a reasonable cause. Hence, imposition of penalty under sections 271D and 271E in the facts of present appeals was unjustified.
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Penalty under section 271D/271E - Contravention of section 269SS/269T - Reasonable cause -
AO levied penalty under sections 271D and 271E for availing and repaying loan otherwise than by an account payee cheque/demand draft in violation of the provisions contained under sections 269SS and 269T. Held: Prior to the decision in Triumph International Finance India Ltd. [(2012) 345 ITR 270 (Bom.) : 2012 TaxPub(DT) 2091 (Bom-HC)] which was rendered on 12-6-2012, it was held that where there is a reasonable cause for assessee to receive and repay loan through journal entries, it would not come within the purview of sections 269SS and 269T and thus non-compliance would certainly be a reasonable cause under section 273B for non-imposition of penalty under sections 271D and 271E. In the facts of the present appeals, admittedly, the availing and repayment of loan through book entries was prior to 12-6-2012. Therefore, imposition of penalty under sections 271D and 271E in the facts of the present appeals was unjustified.
Followed:Triumph International Finance India Ltd. [(2012) 345 ITR 270 (Bom-HC) : 2012 TaxPub(DT) 2091 (Bom-HC)].
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2007-08
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