Penalty u/s 269SS ::

Last updated: 25 November 2007

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Court :
HC

Brief :
Held by the Hon`ble Court that, the A.O. must be satisfied, not arbitrarily but judiciously. In the facts and circumstances of the case, penalty levied on technical mistake committed by the assessee and due to this there is no loss of revenue, shall be harsh and cannot be sustained in law. Therefore penalty levied under section 271 D due to accepting loan not according to modes defined in section 269SS but having reasonable cause, was not proper and justified.

Citation :
OMEC Engineers Vs. Commissioner of Income Tax

Penalty OMEC Engineers Vs. Commissioner of Income Tax 09/18/2007 [2007] 294 ITR 599 (Jharkhand) Case Fact: Whether, penalty levied under section 271 D due to accepting loan not according to modes defined in section 269SS but having reasonable cause, was proper and justified? Decision: Held by the Hon`ble Court that, the A.O. must be satisfied, not arbitrarily but judiciously. In the facts and circumstances of the case, penalty levied on technical mistake committed by the assessee and due to this there is no loss of revenue, shall be harsh and cannot be sustained in law. Therefore penalty levied under section 271 D due to accepting loan not according to modes defined in section 269SS but having reasonable cause, was not proper and justified.

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Judgement posted by

CA.Saibaburao Nanduri

Chartered Accountant

I am a commerce graduarte of Andhra University. Studied at HINDU COLLEGE, Guntur. Became FCA and started Practice under the name and style of M/s SAIBABU RAO CO I became Chairman of CA Institute, Guntur Branch, during the year 2008-09 My post qualifications are: Information Systems Audit DISA (ICAI) ... Read more

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