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2022 (9) TMI 1460 - ITAT BANGALORE
Penalty u/s 271D - contravention of Sec. 269SS - loan is received from the Executive Directors to the Company, who are controlling the financial affairs of the Company - Was there there was reasonable cause u/s 273B? - HELD THAT:- As in this present case, the transaction between assessee company and its Executive Directors is on account to meet the urgent financial requirements of the company. Accordingly, it cannot be considered and there exist reasonable causes for accepting the money in cash from the Executive Directors of the company who are responsible for day-to-day affairs of the company. In our opinion, in this case, levy of penalty u/s 271D of the is unwarranted. Accordingly, we inclined to delete the penalty levied by the AO confirmed by Ld. CIT(A). Appeal filed by the assessee is allowed.