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

Last updated: 21 December 2022
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

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