Kamaljeet Kaur Gill Vs Joint Commissioner of Income Tax (Chhattisgarh High Court)
Chhattisgarh High Court held that reasonable cause has been shown for non-compliance with the provisions contained in Section 269T of the Act and further it is not disputed that the transaction is genuine and bona fide. Thus, appeal allowed and imposition of penalty u/s. 271E set aside.
Facts- The appellant’s assessment u/s. 143(3) r.w.s. 147 of the Income Taxt Act, 1961 for the assessment year 2015-16 was completed on 26-12-2017, however, in the assessment proceeding, AO held that the assessee has made repayment of loan to M/s. Tata Finance Corporation in that financial year to the extent of ₹ 22,96,476/- in cash against the loan taken for commercial vehicle and accordingly proceeded to initiate penalty proceeding u/s. 271E of the Act on the ground that repayment of loan to the extent of more than Rs. 20,000/- by the assessee is in violation of provisions contained in Section 269T of the Act. AO did not accept the explanation of the assessee and order imposing penalty u/s. 271E of the Act was passed on 28-12-2018.
CIT(A) and ITAT both dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
