No Penalty U/s. 271E on cash refund of advance from customers under Bonafide Belief

 M/s. Orison Transport Vs DCIT (ITAT Cuttack)

Belief of the assessee that return of advance from customers is not prohibited by section 269T was a bonafide belief. Therefore, the levy of penalty u/s.271E of the Act of Rs.21,49,943/- cannot be sustained.

FULL TEXT OF THE ITAT JUDGMENT

This is an appeal filed by the assessee against the order of the CIT(A)-2, Bhubaneswar dated 29.3.2017 for the assessment year 2008-2009.

2. The sole issue involved in this appeal is that the CIT(A) erred in confirming the levy of penalty of Rs.21,49,943/- u/s.271E of the Act.

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