Section 269SS not apply when explanation given constitutes reasonable cause

Padmanabha Mangalore Chowta Vs Addl/Joint Commissioner of Income-Tax (ITAT Bangalore)

ITAT Bangalore held that provisions of section 269SS of the Income Tax Act cannot be applied when explanation given by the assesse constitutes a reasonable cause. Accordingly, concluded that bonafide business transaction cannot be considered for levying the penalty u/s 271D of the Act.

Facts- The assessee is an individual whose assessment has been completed for A.Y. 2017-18 on 31.10.2019

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