High Court affirms ITAT decision deleting penalty under Income Tax Act

The High Court Bombay upheld the ITAT decision to delete the penalty under Section 271D of the Income Tax Act, 1961. The assessee, who obtained a loan from close relatives for purchasing a house, successfully argued that it was sourced from agricultural income. Consequently, the penalty was waived, and the appeal was dismissed without costs.

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The High Court Bombay upheld the decision of the ITAT to delete the penalty under Section 271D of the Income Tax Act, 1961. The case involved an assessee obtaining a loan from close relatives for purchasing a house, claiming it was from agricultural income. The Tribunal found this to be a reasonable cause, exempting the assessee from penalty. The appeal was dismissed with no costs.

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