https://www.taxtmi.com/caselaws?id=75290 The High Court of Bombay held that loans exceeding Rs. 20,000 taken in cash are subject to penalty under section 271D of the Income-tax Act, 1961. The Court ruled that Circular No. 572 issued by the Central Board of Direct Taxes, stating penalties apply to loans exceeding Rs. 20,000 in cash, is binding on the Assessing Officer. Despite discrepancies in wording, the Circular's interpretation prevailed. The Court dismissed the Revenue's appeal, emphasizing adherence to the Circular's provisions, which dictated that penalties did not apply in this case as loans were not over Rs. 20,000 from each individual. en-us Wed, 25 Jun 2008 00:00:00 +0530 Mon, 05 Apr 2010 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=75290 The High Court of Bombay held that loans exceeding Rs. 20,000 taken in cash are subject to penalty under section 271D of the Income-tax Act, 1961. The Court ruled that Circular No. 572 issued by the Central Board of Direct Taxes, stating penalties apply to loans exceeding Rs. 20,000 in cash, is binding on the Assessing Officer. Despite discrepancies in wording, the Circular's interpretation prevailed. The Court dismissed the Revenue's appeal, emphasizing adherence to the Circular's provisions, which dictated that penalties did not apply in this case as loans were not over Rs. 20,000 from each individual. Case-Laws Income Tax Wed, 25 Jun 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=75290