No Section 271E penalty for Violating Section 269SS & 269T Due to Reasonable Cause

Nilons Enterprises Pvt. Ltd. Vs ITO (ITAT Pune) Conclusion: Penalty under Section 271E was not leviable as there was a reasonable cause for adjustment of security deposits against outstanding’s receivable on the part of the assessee for violation, of sections 269SS and 269T. Held: Assessee-company was engaged in the business of manufacturing and selling food products had filed its income tax returns (ITR) for the for the AY 2016-17, declaring the income as nil. During the assessment proceedings, AO observed that assessee made repayment of loans/deposits through a mode other than account ...