https://www.taxtmi.com/caselaws?id=449383 The ITAT Chennai held that penalty under section 271D for cash loan violations was unwarranted where the assessee initially received loans from close relatives which were subsequently treated as gifts and credited to capital account. The assessee provided confirmation letters from lenders including father-in-law and wife confirming amounts as gifts, death certificate for deceased mother, and reasonable cause for receiving money for machinery purchase. The tribunal found the explanation reasonable and directed deletion of the penalty, deciding in favor of the assessee. en-us Wed, 07 Feb 2024 00:00:00 +0530 Fri, 09 Feb 2024 11:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449383 The ITAT Chennai held that penalty under section 271D for cash loan violations was unwarranted where the assessee initially received loans from close relatives which were subsequently treated as gifts and credited to capital account. The assessee provided confirmation letters from lenders including father-in-law and wife confirming amounts as gifts, death certificate for deceased mother, and reasonable cause for receiving money for machinery purchase. The tribunal found the explanation reasonable and directed deletion of the penalty, deciding in favor of the assessee. Case-Laws Income Tax Wed, 07 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449383