https://www.taxtmi.com/caselaws?id=121982 The Tribunal allowed the appeal, deleting the penalty imposed under section 271D of Rs. 5 lakhs. It was held that the cash deposit of Rs. 5 lakhs was received from a director in unique circumstances to ensure the company's cheques were honored, constituting a genuine and crucial transaction for the business. The Tribunal found the finance company had a legitimate reason for the transaction to protect its business interests, leading to the conclusion that there was a reasonable cause for the transaction, resulting in the removal of the penalty. en-us Thu, 27 Dec 2007 00:00:00 +0530 Tue, 07 Aug 2012 16:47:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=121982 The Tribunal allowed the appeal, deleting the penalty imposed under section 271D of Rs. 5 lakhs. It was held that the cash deposit of Rs. 5 lakhs was received from a director in unique circumstances to ensure the company's cheques were honored, constituting a genuine and crucial transaction for the business. The Tribunal found the finance company had a legitimate reason for the transaction to protect its business interests, leading to the conclusion that there was a reasonable cause for the transaction, resulting in the removal of the penalty. Case-Laws Income Tax Thu, 27 Dec 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=121982