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2019 (5) TMI 848 - AT - Income TaxLevy of penalty u/s 271D - Accepting cash loans - not aware of the provisions of section 269SS ad 269T - reasonable cause for accepting loans in cash u/s 237B - HELD THAT:- Assessee has stated before the CIT (A) that the loans were taken in cash on account of his sister’s marriage and that the loans were repaid through banking channels by way of RTGS and therefore, the genuineness of the loan and the identity of the creditor has been established. Penalty u/s 271D is subject to the provisions of section 273B. Therefore, penalty u/s 271D is not automatic and when the assessee provides a reasonable explanation, the penalty is not leviable. The assessee’s contention that the loans were taken for the marriage of his sister has not been found to be incorrect and also the fact that the loans have been repaid by cheques is not controverted. Further, we also find that the notice u/s 271D was issued after nearly four years and therefore, it is to be seen if it was within a reasonable period . See MS LOKAIAH VERSUS ADDITIONAL COMMISSIONER OF INCOME TAX [2016 (8) TMI 810 - ITAT HYDERABAD] We are satisfied that there existed reasonable cause for the assessee accepting the loans in cash and particularly since the loans have been repaid by way of RTGS. - Decided in favour of assessee.
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