https://www.taxtmi.com/caselaws?id=62621 Penalties for cash acceptance/repayment of loans/deposits were held unsustainable because the provisions were enacted to curb introduction of unaccounted money, and the record showed the transactions were genuine with no revenue allegation of use of cash loans/deposits to explain unaccounted funds; the penalties were deleted. The penalties were also held barred by limitation under s. 275(1)(c) because penalty action was initiated by an earlier show-cause notice covering the entire set of transactions, and later notices could not shift the initiation date; penalty orders passed thereafter were quashed as time-barred. Independently, "reasonable cause" under s. 273B was accepted since audited accounts and departmental assessments did not flag any breach, evidencing bona fide ignorance; no penalty was exigible. The constitutional validity challenge was rejected as beyond the Tribunal's jurisdiction. en-us Wed, 27 Mar 2002 00:00:00 +0530 Fri, 09 Jan 2026 15:06:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62621 Penalties for cash acceptance/repayment of loans/deposits were held unsustainable because the provisions were enacted to curb introduction of unaccounted money, and the record showed the transactions were genuine with no revenue allegation of use of cash loans/deposits to explain unaccounted funds; the penalties were deleted. The penalties were also held barred by limitation under s. 275(1)(c) because penalty action was initiated by an earlier show-cause notice covering the entire set of transactions, and later notices could not shift the initiation date; penalty orders passed thereafter were quashed as time-barred. Independently, "reasonable cause" under s. 273B was accepted since audited accounts and departmental assessments did not flag any breach, evidencing bona fide ignorance; no penalty was exigible. The constitutional validity challenge was rejected as beyond the Tribunal's jurisdiction. Case-Laws Income Tax Wed, 27 Mar 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62621