B.P. Patel And Co vs ITO
The assessee has narrated the circumstances in relation to the cash payments to four parties (Sec. 269T). The assessee has attempted to demonstrate from the ledger account that the outstanding has been carried forward from the earlier years and a part payment was also made in the preceding years as a measure of discharge of liability arising from purchase of tobacco products. The similar payment in cash has been made in the earlier year which has not been disputed by the Revenue. The issue in question is the imposition of penalty under Section 271E.
The stand of the assessee towards purchase of tobacco is consistent and emanating from the orders of the lower authorities. Hence, the penalty imposed under Section 271E by the competent authority (JCIT) is set-aside and quashed. In the result, assessee’s appeal is allowed.