https://www.taxtmi.com/highlights?id=91171 The ITAT held that the assessee's repayment of loan EMIs in cash to an NBFC, a practice followed upon default, constituted reasonable cause under section 273B. The tribunal found the CIT(A) erred in rejecting the assessee's explanation for cash payments. Since the penalty under section 271E relates to the entire addition and the assessee satisfactorily demonstrated justification for the cash repayments, the penalty was deleted. The assessee's appeal was allowed, resulting in the quashing of the penalty imposed for repayment of loan in cash otherwise than by prescribed modes. en-us Sat, 02 Aug 2025 07:24:50 +0530 Sat, 02 Aug 2025 07:24:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=91171 The ITAT held that the assessee's repayment of loan EMIs in cash to an NBFC, a practice followed upon default, constituted reasonable cause under section 273B. The tribunal found the CIT(A) erred in rejecting the assessee's explanation for cash payments. Since the penalty under section 271E relates to the entire addition and the assessee satisfactorily demonstrated justification for the cash repayments, the penalty was deleted. The assessee's appeal was allowed, resulting in the quashing of the penalty imposed for repayment of loan in cash otherwise than by prescribed modes. Highlights Income Tax Sat, 02 Aug 2025 07:24:50 +0530 https://www.taxtmi.com/highlights?id=91171