https://www.taxtmi.com/caselaws?id=768289 ITAT Mumbai held that penalty under Section 271D for violation of Section 269SS was unjustified where loan transaction was recorded through journal entries in books of accounts. The tribunal found that Rs. 15 lakh was paid through banking channels and confirmed by NBFC, while Rs. 10 lakh was paid for film promotion. Section 269SS applies only to actual acceptance of money in cash, not book entries creating liability. Legislative intent prevents cash transactions, not accounting adjustments. Following precedents from Bombay HC and Delhi HC, penalty of Rs. 15 lakh was deleted in favor of assessee. en-us Thu, 06 Mar 2025 00:00:00 +0530 Fri, 04 Apr 2025 07:15:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768289 ITAT Mumbai held that penalty under Section 271D for violation of Section 269SS was unjustified where loan transaction was recorded through journal entries in books of accounts. The tribunal found that Rs. 15 lakh was paid through banking channels and confirmed by NBFC, while Rs. 10 lakh was paid for film promotion. Section 269SS applies only to actual acceptance of money in cash, not book entries creating liability. Legislative intent prevents cash transactions, not accounting adjustments. Following precedents from Bombay HC and Delhi HC, penalty of Rs. 15 lakh was deleted in favor of assessee. Case-Laws Income Tax Thu, 06 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768289