https://www.taxtmi.com/caselaws?id=357480 The ITAT allowed the appeal, overturning the penalty of Rs. 1,70,000 imposed under Section 271D of the Income Tax Act. The ITAT held that the deposits, treated as business income, could not be considered loans violating Section 269SS. Emphasizing the importance of distinguishing between business receipts and loans, the decision highlighted the necessity of providing a reasonable opportunity to the assessee before penalty imposition. Once the deposits were categorized as business income, the grounds for the penalty under Section 271D were deemed invalid. en-us Tue, 20 Mar 2018 00:00:00 +0530 Fri, 23 Mar 2018 07:26:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=357480 The ITAT allowed the appeal, overturning the penalty of Rs. 1,70,000 imposed under Section 271D of the Income Tax Act. The ITAT held that the deposits, treated as business income, could not be considered loans violating Section 269SS. Emphasizing the importance of distinguishing between business receipts and loans, the decision highlighted the necessity of providing a reasonable opportunity to the assessee before penalty imposition. Once the deposits were categorized as business income, the grounds for the penalty under Section 271D were deemed invalid. Case-Laws Income Tax Tue, 20 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=357480