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2019 (3) TMI 426 - AT - Income TaxLevy of penalty u/s 271D and 271E - cash transactions exceeding permissible limit - taking of loan or repayment of loan in cash - HELD THAT:- The assessee had furnished all the necessary details of the transaction before the CIT (A), but the CIT (A) has failed to consider the details filed by the assessee. On examination of the documents filed by the assessee, we are convinced that the amount received and repaid by the assessee subsequently is not a loan. This is a transaction done on behalf of his children to accommodate than in obtaining DD’s without charges and cannot be considered as taking of loan or repayment of loan in cash. The decisions relied upon by the learned Counsel for the assessee, i.e. CIT vs. Deccan Designs (India) P Ltd [2010 (7) TMI 818 - MADRAS HIGH COURT] and Director of Income Tax (Exemption) vs. All India Deaf and Dumb Society [2005 (5) TMI 32 - DELHI HIGH COURT] are to the effect that where the transactions are genuine and enough reasons are offered by the assessee to justify the cash transaction, the penalty is not leviable both u/s 271D and 271E of the Act. - Decided in favour of assessee.
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