https://www.taxtmi.com/caselaws?id=220104 The Tribunal held that the penalty imposed under Section 271E of the Income Tax Act was not justified as the cash payment to the director was made in good faith to prevent dishonoring a cheque, constituting a reasonable cause under Section 273B. The transaction was deemed part of a current account with no interest, not a loan, and the penalty was set aside. The judgment underscored the significance of considering the context and bona fide intentions behind transactions in penalty assessments under the Income Tax Act. en-us Wed, 19 Sep 2012 00:00:00 +0530 Thu, 10 Jan 2013 13:02:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=220104 The Tribunal held that the penalty imposed under Section 271E of the Income Tax Act was not justified as the cash payment to the director was made in good faith to prevent dishonoring a cheque, constituting a reasonable cause under Section 273B. The transaction was deemed part of a current account with no interest, not a loan, and the penalty was set aside. The judgment underscored the significance of considering the context and bona fide intentions behind transactions in penalty assessments under the Income Tax Act. Case-Laws Income Tax Wed, 19 Sep 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=220104