https://www.taxtmi.com/caselaws?id=795202 Penalty for accepting loans other than through prescribed banking modes was not leviable where genuine business loans, originally received through banking channels, were transferred by journal entries as part of bona fide financial restructuring. The transfers followed a partnership business takeover by a company, the entities' inability to repay lenders, and the assessee's existing lender guarantees. As no cash was involved and the entries enabled an orderly assumption and repayment of liabilities, the circumstances established reasonable cause for the journal-entry transfers. en-us Tue, 14 Jul 2026 00:00:00 +0530 Sat, 18 Jul 2026 08:27:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795202 Penalty for accepting loans other than through prescribed banking modes was not leviable where genuine business loans, originally received through banking channels, were transferred by journal entries as part of bona fide financial restructuring. The transfers followed a partnership business takeover by a company, the entities' inability to repay lenders, and the assessee's existing lender guarantees. As no cash was involved and the entries enabled an orderly assumption and repayment of liabilities, the circumstances established reasonable cause for the journal-entry transfers. Case-Laws Income Tax Tue, 14 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795202