https://www.taxtmi.com/caselaws?id=775927 The ITAT Ahmedabad allowed the appeal against the penalty under section 271E for repayment of loan in cash. The assessee, having taken a loan from an NBFC, demonstrated that the cash repayment of EMIs was a customary practice demanded by the NBFC upon default. The tribunal held that merely stating the repayment in cash does not negate reasonable cause under section 273B, especially when the assessee provided valid explanations before the AO and CIT(A). Consequently, the penalty imposed under section 271E, which was based on the entire addition, was deleted. en-us Wed, 01 Jan 2025 00:00:00 +0530 Sat, 02 Aug 2025 07:24:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775927 The ITAT Ahmedabad allowed the appeal against the penalty under section 271E for repayment of loan in cash. The assessee, having taken a loan from an NBFC, demonstrated that the cash repayment of EMIs was a customary practice demanded by the NBFC upon default. The tribunal held that merely stating the repayment in cash does not negate reasonable cause under section 273B, especially when the assessee provided valid explanations before the AO and CIT(A). Consequently, the penalty imposed under section 271E, which was based on the entire addition, was deleted. Case-Laws Income Tax Wed, 01 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775927