Case Law Details
DCIT Vs Macrotech Developers Ltd (ITAT Mumbai)
Held that there was bonafide belief of the assessee that passing journal entries, even though in violation of mode prescribed u/s. 269SS and section 269T, is permissible. Entries done before judgement of Hon’ble Bombay HC in the case of Triumph International. Penalty deleted on the basis of reasonable cause.
Facts-
The assessee is engaged in the business of development and construction of Real Estate Properties. The assessee filed its ROI declaring a total income of Rs.4,950/- under the normal provisions of the Act and book profit of Rs.11,31,373/- u/s 115JB.
AO noted that the assessee had accepted/repaid loans from various sister concerns through journal entries other than by the account payee cheque/draft. Therefore, AO issued notice to the assessee as to why penalty u/s 271D/271E should not be levied for violation of section 269SS/269T.
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