https://www.taxtmi.com/caselaws?id=331271 The Appellate Tribunal ITAT Mumbai reversed the penalty imposed under section 271D of the Income Tax Act on the assessee, who had taken a cash loan from a shareholder to meet financial obligations due to a shortfall in paying EMI. The Tribunal found a reasonable cause for accepting the cash loan, considering the unique circumstances and the shareholder's withdrawal from the bank account. The Tribunal also ruled in favor of the assessee regarding the contravention of section 269SS, emphasizing the genuine nature of the loan transaction and the absence of unexplained money circulation, ultimately allowing the appeal. en-us Fri, 12 Aug 2016 00:00:00 +0530 Wed, 17 Aug 2016 21:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331271 The Appellate Tribunal ITAT Mumbai reversed the penalty imposed under section 271D of the Income Tax Act on the assessee, who had taken a cash loan from a shareholder to meet financial obligations due to a shortfall in paying EMI. The Tribunal found a reasonable cause for accepting the cash loan, considering the unique circumstances and the shareholder's withdrawal from the bank account. The Tribunal also ruled in favor of the assessee regarding the contravention of section 269SS, emphasizing the genuine nature of the loan transaction and the absence of unexplained money circulation, ultimately allowing the appeal. Case-Laws Income Tax Fri, 12 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331271