Principal Commissioner Of Income Tax-6 v. M/S Narsi Iron & Steel Pvt. Ltd

$~33 IN THE HIGH COURT OF DELHI AT NEW DELHI+ITA No.4/2019 PRINCIPAL COMMISSIONER OF INCOME TAX-6..... AppellantThrough:Mr.Sanjay Kumar with Mr.AsheeshJain, Advs.versus M/S NARSI IRON & STEEL PVT. LTD.,..... RespondentThrough:None CORAM:HON'BLE MR. JUSTICE SANJIV KHANNAHON'BLE MR. JUSTICE ANUP JAIRAM BHAMBHANIO R D E R%11.01.2019 We are not inclined to interfere with the impugned order of the Tribunal affirming deletion of penalty under Section 271E of the IncomeTax Act, 1961 (Act) in this case, as the loan in the books of account of therespondent-assessee, M/s. Narsi Iron & Steel Pvt. Ltd., was converted intoshare application money. This was done by way of a book entry. There wasno repayment, the Tribunal has rightly therefore, held that there was noviolation of Section 269T of the Act.Even otherwise, the aforesaidtransaction/act of the respondent would fall and should be treated asreasonable cause.Section 273Bstatesthatnopenaltyshallbeimposableonthepersonortheassesseeforfailure referred to inSection 271E if the person/assessee proves there was a reasonable cause for the said failure. It is not the allegation of the Revenue that the loan amountreceived was in cash and not by way of cheque or bank instrument.Genuineness of the loan transaction is not disputed. Recording the aforesaid, the appeal is dismissed. SANJIV KHANNA, J. JANUARY 11, 2019neelam ANUP JAIRAM BHAMBHANI, J.