2024 (10) TMI 1086

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....he A.Y.2013-14 arising out of order passed under section 271E of the Income Tax Act, 1961 (in short 'Act') dated 15.03.2022. 2. Brief facts of the case are that, Assessing Officer passed penalty order under section 271E of the Act dated 15.03.2022 pursuant to information received vide letter No. F.No. DIT(I&CI)/Intimation /269T/2019-20 dated 18.03.2020 of the Director of Income Tax (Intelligence &Criminal Investigation), Mumbai that the assessee has paid an amount of Rs. 3,86,600/- towards repayment of loan to M/s. Mahindra & Mahindra Financial Services Pvt. Ltd., on 06.08.2012 in the form of cash, thus violating the provisions of section 269T of the Act. The assessee has submitted circumstances under which the loan was repaid by cash, but....

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.... the assessee's submissions. The amount in question pertains to a cash repayment of a loan to M/s. Mahindra and Mahindra, following the sale of a vehicle by the company itself, where the funds were adjusted to the assessee's loan account due to default. 3. The Ld. CIT(A) NFAC ought to have appreciated that repayment of loan was by way of appropriation of the sale proceeds at the instance of the financer and it was not a voluntary payment by the appellant. 4. The Ld. CIT(A) NFAC and the Assessing Officer (AO) failed to recognize that there was a reasonable cause which prompted the assessee to make repayment of the loan in cash. The lower authorities neglected to consider the levy of penalty from the perspective of section 273B of....