https://www.taxtmi.com/caselaws?id=770176 The HC set aside penalty imposed under Section 271E for contravention of Section 269T. The assessee repaid loan in cash to Tata Finance Corporation on lender's insistence to prevent interest escalation. The AO, CIT(Appeals), and ITAT imposed penalty without considering Section 273B provisions requiring reasonable cause examination. The court held that lender's written instruction to pay in cash constituted reasonable cause under Section 273B, making the transaction genuine and bona fide. Since no revenue loss occurred and reasonable cause was established, the penalty was unsustainable. The authorities erred by automatically imposing penalty for technical breach while ignoring Section 273B's reasonable cause defense. en-us Thu, 01 May 2025 00:00:00 +0530 Wed, 07 May 2025 09:18:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770176 The HC set aside penalty imposed under Section 271E for contravention of Section 269T. The assessee repaid loan in cash to Tata Finance Corporation on lender's insistence to prevent interest escalation. The AO, CIT(Appeals), and ITAT imposed penalty without considering Section 273B provisions requiring reasonable cause examination. The court held that lender's written instruction to pay in cash constituted reasonable cause under Section 273B, making the transaction genuine and bona fide. Since no revenue loss occurred and reasonable cause was established, the penalty was unsustainable. The authorities erred by automatically imposing penalty for technical breach while ignoring Section 273B's reasonable cause defense. Case-Laws Income Tax Thu, 01 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770176