Cash transaction between sister concerns: ITAT Kolkata Deletes Section 271E Penalty

DCIT Vs Sunil Kumar Kundu (ITAT Kolkata) Kolkata bench of the Income Tax Appellate Tribunal (ITAT) deleted a ₹1 crore penalty imposed under Section 271E on Sunil Kumar Kundu for alleged violation of Section 269T of the Income Tax Act. The penalty was related to a cash transaction made by the assessee to his sister concern, M/s Tarai Transport Corporation, which the revenue had treated as repayment of a loan. The assessee, however, contended that the payment was a reimbursement for business expenses such as freight and labour, not a loan repayment. The Tribunal accepted that the transaction o...