Penalty upheld as assessee gave no reason for taking loan in cash
May. 12, 2016
Assessee filed his return of income at Rs.1,24,460. AO imposed penalty u/s 271D for contravention of s 269SS for accepting loan of exceeding Rs.20,000 as the assessee had accepted cash loans of Rs 76,000 from a sister concern M/s Jay Mahalaxmi Textiles whose proprietor was assessee's brother. CIT(A) confirmed the penalty. On appeal, ITAT upheld the penalty as assessee had given no reasonable cause due to which the loan was taken in cash.-501096