Assessee took loan from finance company for purchase of commercial vehicle. Assessee made repayment of said loan in cash Assessing Officer initiated penalty proceedings under section 271E on ground that repayment of loan by assessee in cash was in violation of section 269T. \u00a0The assessee contended that \u00a0on insistence of finance company to pay amount of loan in cash assessee was persuaded to make cash payment and same was duly reflected in books of account which had also been accepted by Assessing Officer during assessment proceedings. The Assessing Officer levied the penalty, which was affirmed by CIT(A) and Tribunal. On appeal the Court held that\u00a0 \u00a0penalty under section 271E for non-compliance of section 269T was subject to provisions contained in section 273B and no penalty would be imposable on assessee for any failure referred to in section 271E if assessee proves that there was reasonable cause for said failure. Since reasonable cause had been shown by assessee for non-compliance with provisions contained in section 269T and transaction was genuine and bona fide, assessee was not liable to pay penalty under section 271E for non-compliance of section 269T.Relied on \u00a0Supreme Court in Assistant Director of Inspection v. Kum. A.B. Shanthi\u00a0[2002] 122\u00a0Taxman\u00a0574\/255 ITR 258 (SC) (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 271E : Penalty-Repayment of loan or deposit-Reasonable cause had been shown by assessee for non-compliance with provisions contained in section 269T and transaction was genuine and bona fide, assessee was not liable to pay penalty under section 271E for non-compliance of section 269T. [S. 269T, 273B] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59368","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fry","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59368","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59368"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59368\/revisions"}],"predecessor-version":[{"id":59369,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59368\/revisions\/59369"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59368"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59368"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59368"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}