2011 (9) TMI 189

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.... by the Revenue is whether the ITAT was justified in deleting the penalty levied under sections 271D/271E r/w sections 269SS and 269T of the Income Tax Act. 1961. 2. The Assessment Years involved herein are A.Y. 1996-1997 to 2002-2002. 3. The Assessee is an individual and is interalia engaged in the business of money lending. On 14.12.2000, a search and seizure action was conducted at the re....

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....enalty proceedings and imposed penalty under sections 271D and 271E of the Income Tax Act, 1961. 5. On appeals filed by the Assessee, the CIT(A) upheld the penalty imposed under sections 271D and 271E of the Income Tax Act, 1961, however directed the Assessing Officer to compute the penalty only on the amount exceeding Rs.20,000/. Challenging the aforesaid order, both the Assessee as also the R....

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....upholding the levy of imposition of penalty under sections 271D and 271E of the Act, the ITAT by the impugned order dt.25.2.2011 cancelled the penalties and allowed the appeals filed by the Assessee. Challenging the aforesaid order, the Revenue has filed these appeals. 8. Based on the decision of the CIT(A), it is contended by the counsel for the Revenue that once it is established that the Assess....

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....d many of them were not having bank accounts. (c) That the Assessee was not professionally managed nor professionally advised. (d) That the enquiry conducted by the Revenue in the block assessment proceedings subsequent to the search and seizure action revealed that all the transactions in question were genuine transactions. 10. The Tribunal has further held that when the transactions are....