2017 (1) TMI 1420 - HC - Income Tax

Penalty u/s 271E - violation of section 269T - Held that - Tribunal has recorded a clear finding of fact with regard to the genuineness and transparency of the transactions, which records categorically that there were no cash or hidden transactions but the transactions were only through bank accounts. Such being the case, the penalty was deleted. In view of the findings recorded by the Tribunal, question of law is answered in favour of the assessee and against the department.

Summary

The High Court of Allahabad dismissed the department's appeal against the Tribunal's order deleting a penalty under section 271E of the Income Tax Act, 1961. The Tribunal found no cash transactions, only bank transactions, leading to the penalty deletion. The appeal was dismissed with no costs.