https://www.taxtmi.com/caselaws?id=459270 The ITAT Chandigarh allowed the assessee's appeal against penalty u/s 271E for alleged contravention of section 269T regarding cash repayment of unsecured loans. The assessee repaid loans to a creditor by supplying goods and adjusting the amount against the initial receipt, rather than cash repayment. The ITAT held that sections 269SS and 269T aim to prevent tax evasion through cash transactions beyond prescribed thresholds. Since the assessee provided documentation supporting sale transactions reported in financial statements, offered to tax, and included in VAT filings, and the Additional CIT failed to verify the explanation or examine relevant books of accounts, no violation of section 269T was established. The penalty was set aside. en-us Wed, 27 Sep 2023 00:00:00 +0530 Fri, 06 Dec 2024 18:57:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459270 The ITAT Chandigarh allowed the assessee's appeal against penalty u/s 271E for alleged contravention of section 269T regarding cash repayment of unsecured loans. The assessee repaid loans to a creditor by supplying goods and adjusting the amount against the initial receipt, rather than cash repayment. The ITAT held that sections 269SS and 269T aim to prevent tax evasion through cash transactions beyond prescribed thresholds. Since the assessee provided documentation supporting sale transactions reported in financial statements, offered to tax, and included in VAT filings, and the Additional CIT failed to verify the explanation or examine relevant books of accounts, no violation of section 269T was established. The penalty was set aside. Case-Laws Income Tax Wed, 27 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459270