Tribunal overturns penalty for cash loan repayment to father, citing reasonable cause for urgent medical treatment.

The Tribunal set aside the penalty imposed under section 271E for repaying a loan in cash to the appellant's father, citing a reasonable cause under section 273B due to the urgent medical treatment required by the father. Despite lack of documentary evidence, the Tribunal considered the close family relationship and the father's confirmation letter as significant factors in determining the reasonable cause for the cash repayment, leading to the appellant's successful appeal against the penalty.

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Issues:
1. Challenge to penalty under section 271E for repayment of loan in cash to father.

Analysis:
The appellant, an individual engaged in business, challenged a penalty of Rs. 1,15,000 under section 271E for repaying a loan to his father in cash. The Assessing Officer initiated penalty proceedings as the repayment contravened section 269T. The appellant explained the cash repayment was due to his father's urgent medical treatment. The Commissioner (Appeals) upheld the penalty citing lack of documentary evidence. The appellant argued for penalty deletion under section 273B due to reasonable cause. The appellant's counsel presented bank statements and a letter from the father confirming the urgent need for cash. The Departmental Representative supported the penalty citing non-compliance with section 269T and lack of evidence for reasonable cause.

The Tribunal considered the loan repayment in cash a violation of section 269T triggering penalty under section 271E. To waive the penalty, the appellant needed to prove a "reasonable cause" under section 273B, indicating a genuine belief beyond their control. The Tribunal evaluated the situation where the father needed immediate cash for medical treatment. Despite the lack of corroborative evidence, the father's confirmation letter was deemed significant due to the close family relationship. Therefore, the Tribunal concluded that the penalty could not be sustained due to the reasonable cause as per section 273B, setting aside the Commissioner (Appeals) order and allowing the appellant's appeal.

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