https://www.taxtmi.com/caselaws?id=206332 Repayment of deposits in cash may attract penalty under section 271E for contravention of section 269T, but section 273B exempts the default where reasonable cause is shown. A cooperative bank had repaid member deposits by crediting the amounts to members' savings accounts and claimed a bona fide belief that the statutory bar did not apply to transactions with its own members. Because the dealings were genuine and supported a plausible view that the repayments fell outside the mischief of section 269T, reasonable cause was established. On that basis, the penalty under section 271E was held unsustainable and cancelled. en-us Fri, 13 May 2011 00:00:00 +0530 Mon, 07 Nov 2011 21:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=206332 Repayment of deposits in cash may attract penalty under section 271E for contravention of section 269T, but section 273B exempts the default where reasonable cause is shown. A cooperative bank had repaid member deposits by crediting the amounts to members' savings accounts and claimed a bona fide belief that the statutory bar did not apply to transactions with its own members. Because the dealings were genuine and supported a plausible view that the repayments fell outside the mischief of section 269T, reasonable cause was established. On that basis, the penalty under section 271E was held unsustainable and cancelled. Case-Laws Income Tax Fri, 13 May 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=206332