Section 271D, 271E of Income Tax Act, 1961— Penalty u/s 271D, 271E— In the instant case, assessee filed the appeal against the imposition of penalty u/s 271D and 271E of the act for the alleged violation of Sections 269SS and 269T of the Act.

Held that— In view of the fact that in similar circumstances and for the same Assessee, the Assessing Authority himself entirely waived off the penalty for the preceding Assessment Year 1999-2000 vide communication dated 9.11.2005, the learned Tribunal, in our opinion, fell in error in upholding the imposition of penalty by just observing that the Assessee ought not have repeated such a mistake and ought to have done the transaction only through Bank which method, in fact, as the learned counsel for the Assessee submitted, was adopted on 31.8.2001 on which date, the Bank Account was opened by the Assessee and therefore, it is only for this Assessment Year 2000-2001 which stands out and in respect of which the present Appeals are concerned.

We are, therefore, inclined to take a lenient view in favour of the Assessee in the facts and circumstances of the case and are inclined to allow the present Appeals in favour of the Assessee on the ground that the for the preceding Assessment Year viz., 1999-2000, on the same set of facts and circumstances, the Assessing Authority himself dropped the penalty proceedings in question. [M/S. NRK THANGAMANI VERSUS THE JOINT COMMISSIONER OF INCOME TAX RANGE III, COIMBATORE][2019] 17 ITCD Online (43) [MADRAS HIGH COURT]