Whether repayment of loan in cash in contravention of provisions of Sec 269T of IT Act 1961 will attract penalty u/s 271E

Last updated: 13 January 2023

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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 involved are identifiable and the transactions are genuine. The tribunal found that the purpose of Section 269T is to identify the source of repayment, and when identities are known, there's no attempt to evade tax. Therefore, the penalty imposed on the assessee for repaying loans in cash was deleted.

Court :
ITAT Kolkata

Brief :
The Income Tax Appellate Tribunal (ITAT) held that the provisions of section 271E of the Income Tax Act, 1961 lays down conditions for imposition of penalty for repayments of loans and deposits in cash, where the amount exceeds Rs. 20,000 in violation of section 269SS of the Act.

Citation :
AUTO FUEL CENTRE Vs. JCIT

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1999

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3499

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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

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