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2016 (8) TMI 655 - AT - Income TaxLevy of penalty u/s. 271D - accepting cash loan - Held that:- In the case under appeal the assessee had taken loan from one of its share holder and that share holder had withdrawn the money from its bank account. Thus, there was no introduction of cash on part of the shareholder. The assessee had to make the EMI payment and for that purpose it had taken a cash loan. In our opinion, it can be considered a reasonable cause looking in to the facts and circumstances. Section 269SS were introduced with specific purpose. The transaction in question does not fall in the mischief for which the section was brought on statute. It is clearly covered by the exceptions provided in the section 273B of the Act. There existed the a reasonable cause for accepting cash in loan in the month of July, 2007. So, reversing the order of the FAA, we decide the effective ground of appeal in favour of the assessee.
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