https://www.taxtmi.com/caselaws?id=249100 The High Court upheld the decision to delete the penalty imposed under Section 271D of the Income-tax Act, 1961 on a civil construction firm for accepting cash loans exceeding the limit under Section 269SS. The Court found that the firm had proven reasonable cause by demonstrating the agricultural status of the lenders, genuineness of transactions, and proper accounting. Emphasizing that penalties should consider the circumstances and intent of the party, the Court ruled that penalties should not be imposed for technical breaches or when there is a bona fide belief of non-liability. The Tax Appeal was dismissed. en-us Mon, 28 Apr 2014 00:00:00 +0530 Wed, 20 Aug 2014 18:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=249100 The High Court upheld the decision to delete the penalty imposed under Section 271D of the Income-tax Act, 1961 on a civil construction firm for accepting cash loans exceeding the limit under Section 269SS. The Court found that the firm had proven reasonable cause by demonstrating the agricultural status of the lenders, genuineness of transactions, and proper accounting. Emphasizing that penalties should consider the circumstances and intent of the party, the Court ruled that penalties should not be imposed for technical breaches or when there is a bona fide belief of non-liability. The Tax Appeal was dismissed. Case-Laws Income Tax Mon, 28 Apr 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=249100