https://www.taxtmi.com/caselaws?id=449637 The ITAT Surat ruled in favor of the assessee-company regarding penalties under sections 271D and 271E. The company had accepted cash loans from its directors exceeding prescribed limits, leading to penalty proceedings. The tribunal held that transactions conducted during business exigency do not attract penalty under section 271D, noting that both the company and directors disclosed these transactions in their respective books of accounts. The loans were not from the public but between directors and company to meet business requirements. Consequently, penalties under both sections 271D and 271E were deleted, with the tribunal finding no separate adjudication required for loan repayment issues. en-us Wed, 14 Feb 2024 00:00:00 +0530 Fri, 16 Feb 2024 07:29:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449637 The ITAT Surat ruled in favor of the assessee-company regarding penalties under sections 271D and 271E. The company had accepted cash loans from its directors exceeding prescribed limits, leading to penalty proceedings. The tribunal held that transactions conducted during business exigency do not attract penalty under section 271D, noting that both the company and directors disclosed these transactions in their respective books of accounts. The loans were not from the public but between directors and company to meet business requirements. Consequently, penalties under both sections 271D and 271E were deleted, with the tribunal finding no separate adjudication required for loan repayment issues. Case-Laws Income Tax Wed, 14 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449637