Case Law Details
Delhi State Taxi Operators’s Co-operative Thrift Credit & Services Society Ltd. Vs JCIT (ITAT Delhi)
ITAT Delhi held that considering the bonafide and genuine transaction, reasonable cause in terms of section 273B of the Act, exist in the case of the assessee for not complying with the provision of section 269SS and 269T, and therefore, penalty u/s 271D and 271E not leviable.
Facts- The two appeals filed by the assessee are directed against two separate orders both dated 28.03.2019 of the Ld. Commissioner of Income Tax (Appeals)–19, New Delhi (“CIT(A)”) whereby he upheld the penalty of Rs. 16,71,24,134/- and Rs. 2,01,58,524/- levied by the Ld. JCIT Range-16, New Delhi (“JCIT”) under section 271D and 271E of the Income Tax Act, 1961 (the “Act”) for the Assessment Year (“AY”) 2013-14 for violation of the provisions of section 269SS and 269T respectively of the Act.
Conclusion- Held that the assessee has discharged the onus which lay upon it to establish the existence of reasonable cause for violation of the provision of section 269SS and 269T of the Act. In our opinion, the explanation offered by the assessee before the Ld. JCIT/CIT(A) was reasonable but was discarded merely because they proceeded on the premise that breach of condition provided under section 269SS and 269T shall necessarily lead to penal consequences which understanding in our humble opinion is not in accordance with law. We, therefore, cancel the penalty levied under section 271D and 271E of the Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
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