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2014 (4) TMI 557 - AT - Income TaxPenalty u/s 271E of the Act – Repayment of loan made in cash – Held that:- The assessee had taken loan from his father in the earlier financial years through cheques - The re–payment of a loan in cash clearly violates the provisions of section 269T and, accordingly, penal provisions under section 271E, are triggered - the assessee had submitted that the re–payment of loan in cash was under the circumstances when his father was in urgent need of cash for the purpose of his medical treatment which he was undergoing at that time - no corroborative evidence was given, only a letter of confirmation was filed by the father reiterating the same cause - the confirmation letter from the father cannot be completely brushed aside, especially when the transaction is between a very close relationship i.e., father and son – thus, the penalty levied u/s 271E cannot be sustained in view of the reasonable cause, as envisaged in section 273B – thus, the order of the CIT(A) set aside – Decided in favour of Assessee.
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