Tribunal overturns penalty for accepting loan through banking channels with no cash transactions

The Tribunal allowed the appeal, finding the penalty under Section 271D unjustified as the loan was accepted through banking channels with no cash transactions involved. The appellant, an agriculturist, provided documentary evidence supporting this claim, leading to the dismissal of the penalty for A.Ys. 2013-14 and 2016-17.

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Issues involved: Appeal against order passed by Ld. Commissioner of Income Tax (Appeals) for A.Ys. 2013-14 & 2016-17.

Summary:

Issue 1: Grounds of appeal against Ld. CIT(A) order
The appellant raised various grounds of appeal against the order passed by Ld. CIT(A), including issues related to penalty levied u/s 271D and contravention of Section 269SS.

Issue 2: Penalty imposed under Section 271D
The Assessing Officer imposed a penalty under Section 271D for accepting cash loan in contravention of Section 269SS. The appellant contended that the loan was taken through banking channel and provided documentary evidence to support this claim.

Issue 3: Appeal before CIT(A)
The appellant filed an appeal before the CIT(A) challenging the penalty order. The CIT(A) dismissed the appeal, leading to further proceedings.

Issue 4: Arguments presented
The appellant, being an agriculturist, argued that no regular assessment was conducted, and the loan was accepted through banking channels. The appellant submitted documentary evidence to support this claim.

Issue 5: Tribunal's decision
After hearing both parties and examining the evidence, the Tribunal noted that no cash transactions were involved, and the loan was accepted through banking channels. Therefore, the penalty under Section 271D was deemed unjustified, and the appeal was allowed for both A.Ys. 2013-14 and 2016-17.

Separate Judgment:
The Tribunal allowed both appeals, emphasizing that no cash transactions were involved, and the penalty under Section 271D was unjustified.

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