Nilons Enterprises (P) Ltd. v. ITO [2024] 161 taxmann.com 566 ( Pune )( Trib)

S. 271E : Penalty for failure to comply with provisions of section 269T – Adjustments through journal entries for genuine business purposes – Penalty is deleted . [ S. 269SS, 269T, 273B ]

The Tribunal  held that adjustments through journal entries for genuine business purposes, such as recovering outstanding dues from CSAs, constituted reasonable cause under section 273B.The transactions were genuine, duly recorded in books of account, and did not involve unaccounted money. Accordingly, genuine journal entries, though technically non-compliant with section 269T, did not attract penalty under section 271E. [AY 2016-17]

 

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