Levy of penalty u/s 271D and 271E in case of non-genuineness of transactions between director and assessee-company

M/s. Vasan Healthcare P Ltd. Vs Addl. CIT (Madras High Court) Conclusion: Penalty u/s 271D and 271 E was leviable as there was absolutely no genuinity or bonafideness in the transaction done between the promoter/ director and assessee- company. Held: In the instant case, deposit of the cash by the Director received from Mr.J.D. into the bank account of assessee-company on the same day and those amounts, being utilized for making several payments including salaries, apart from that the Director withdrawing money from the assessee’s bank account and remitting to the Financier by cash could...