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2016 (12) TMI 445 - AT - Income TaxPenalty u/s 271D - accepting cash loan in violation of section 269SS - Held that:- It is noted from the record that the assessee had received the loans from his close relatives and family members not exceeding ₹ 20,000/- at one time. These loans were taken in the business interest as the assessee had started a new venture. These amounts were repaid in parts to the respective persons which can be seen from the bank statement of the assessee. The assessee was under bona fide belief that the loan amount of less than ₹ 20,000/- can be taken in cash and if it is exceeded more than 20,000/- then it will be taken either through cheque or Demand Draft. Thus the assessee had taken the loan less than ₹ 20,000/- from his close relatives and family members Further the assessee immediately deposited the amount in bank account for making payment to the party. The genuineness of these deposits was never doubted by the AO. Thus as the transactions being genuine and the assessee having offered reasonable explanation justifying these cash transactions, the impugned penalty u/s 271D is not leviable. See Smt. Kusum Dhamani vs. Addl. CIT [2015 (4) TMI 144 - ITAT JAIPUR ] - Decided in favour of assessee
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