No Penalty on Return of loan by cash to sister concern under a bonafide belief

AO held that the assessee had accepted Rs.50,000/- in cash as share application from M/s Gagan Buildwell Private Limited in violation of section 269SS. Accordingly penalty u/s 271 D was imposed relying upon the decision of the Hon’ble Jharkhand High Court in the case of Bhalotia Engineering Works (P.) Ltd. vs CIT (2005) 275 ITR 399. The  explanation offered by the assessee in the penalty proceedings was not accepted by the AO. The assessee carried the issue unsuccessfully before the CIT(A) who confirmed the penalty order. Aggrieved by this the assessee has came up in appeal in the prese...