Bona Fide Belief in Transaction's Genuineness is Reasonable Cause Under Section 273B, No Penalty Under Section 271E: Chhattisgarh High Court

The Chhattisgarh High Court, in a significant ruling dated April 2025, held that when an assessee acts under a bona fide belief and the transaction is genuine, it constitutes a reasonable cause under Section 273B of the Income Tax Act, 1961, which shields the assessee from penalty proceedings under Section 271E. The judgment was passed by the Division Bench comprising Justice Sanjay K. Agrawal and Justice Deepak Kumar Tiwari in…