NBFC cash loan repayment scrutinized, penalty waived for genuine transaction.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The Income Tax Appellate Tribunal held that the repayment of a loan in cash to a Non-Banking Financial Company (NBFC) is not entirely free from doubt, considering the Reserve Bank of India's (RBI) notification dated 9th March 2017. The RBI notification provides a plausible view, and the Tribunal found reasonable cause u/s 273B of the Income Tax Act in the peculiar facts of the case. Additionally, the Tribunal acknowledged the genuineness of the transaction in question. Consequently, the levy of penalty u/s 271E of the Income Tax Act was deleted, and the assessee's appeal was allowed.....