https://www.taxtmi.com/caselaws?id=66109 Penalties under s.271D for cash acceptance of loans exceeding the s.269SS threshold were examined on the assessee's plea of "reasonable cause" under s.273B. The Tribunal held the cash borrowings were driven by genuine business exigencies for factory construction, were not intentional, and did not frustrate the anti-tax evasion object of s.269SS; hence the breach was merely technical. The penalty under s.271D was therefore set aside and cancelled. Separately, penalty under s.271E was held unsustainable because s.269T/s.271E, on a plain reading, govern repayment of "deposits" and conspicuously omit "loans"; repayment of loans in cash was thus outside s.269T. In any event, reasonable cause was shown. The s.271E penalty was cancelled and the appeals were allowed. en-us Thu, 13 May 1999 00:00:00 +0530 Fri, 19 Dec 2025 20:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66109 Penalties under s.271D for cash acceptance of loans exceeding the s.269SS threshold were examined on the assessee's plea of "reasonable cause" under s.273B. The Tribunal held the cash borrowings were driven by genuine business exigencies for factory construction, were not intentional, and did not frustrate the anti-tax evasion object of s.269SS; hence the breach was merely technical. The penalty under s.271D was therefore set aside and cancelled. Separately, penalty under s.271E was held unsustainable because s.269T/s.271E, on a plain reading, govern repayment of "deposits" and conspicuously omit "loans"; repayment of loans in cash was thus outside s.269T. In any event, reasonable cause was shown. The s.271E penalty was cancelled and the appeals were allowed. Case-Laws Income Tax Thu, 13 May 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66109