Whether repayment of loan in case attracts penalty u/s 271E of IT Act 1961

Last updated: 21 December 2022

Save Share

Quick Summary

The Income Tax Appellate Tribunal (ITAT) Kolkata ruled that a penalty under Section 271E of the Income Tax Act, 1961, should not be levied for cash loan repayments if the parties are identifiable and the transactions are genuine. The tribunal found that the purpose of Section 271E is to identify the source of funds, and where this is clear and there's no attempt to evade tax, the penalty is unwarranted. Consequently, a penalty of Rs. 5,80,000 imposed on the assessee for repaying loans in cash was deleted.

Court :
ITAT Kolkata

Brief :
Whether the repayment of loan in cash in contravention of the provisions of section 269T of the Income Tax Act 1961 will attracts Penalty u/s 271E of the Income Tax Act, 1961?"

Citation :
AUTO FUEL CENTRE Vs. JCIT

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

334 Views Comment Share Income Tax Report

Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

View Judgements

Comments