2026 (5) TMI 471

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....acts in brief are that some information was received by the Ld. AO that the assessee had accepted cash in excess of Rs. 20,000/-, in connection with sale of an immovable property. Thereafter, the impugned penalty was levied on the basis of sale deed dated 13.04.2016 executed by the assessee in favour of one Shri Rajat Sherawat. Thereafter, the Ld. AO levied the penalty through order dated 31.07.2019. Importantly this penalty was levied without there being any assessment order whatsoever. The assessee had challenged this action before the Ld. CIT(A) where he could not succeed. 1.3 The aggrieved assessee has approached the ITAT with four grounds of appeal challenging the impugned action. 2. Before us the Ld. AR pointed out the facts of ....

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....onsideration in this appeal is whether the assessee had contravened the provisions of Section 269T of the Act by making repayment of loan/deposits of Smt. Kusum Lata Thakral, through account payee cheque or account payee drafts to M/s. Babyloan Builders Pvt. Ltd., Gurgaon and, therefore, penalty under Section 271E was leviable. 5. The Assessing Officer had levied the penalty amounting to Rs. 11,02,6107- which has been deleted by the Tribunal. The Tribunal while deleting the penalty recorded that the return of the assessee was processed as on 31.12.2003 and the notice u/s. 274 read with section 271E of the Act was issued on 12.06.2007. Such notice was issued when there was no proceedings pending before the Assessing Officer. Relying....

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....e was a reasonable cause for the assessee to have made direct payment of Rs. 14,02,600/- to M/s. Babyloan Builders Private Ltd., Gurgaon. It was pleaded that some of the repayments made by the assessee were inter-company transfer for group housing and purchase of flat and at times payments were made after closure of banking hours. It was further submitted that the payments made were genuine and no tax evasion was involved and the default, if any, was of technical nature. The explanation being plausible one, it cannot be said that there was no reasonable cause within the meaning of Section 273B of the Act. No substantial question of law arises in this appeal. 8. We find substances in the submissions made by the Ld. A.R. particularly....