HC held that the assessee demonstrated reasonable cause under ...

Taxpayer Wins Appeal: Cash Loan Repayment Deemed Legitimate Under Section 273B, Penalty Overturned

April 29, 2025

Case Laws Income Tax HC

HC held that the assessee demonstrated reasonable cause under Section 273B for repaying a loan exceeding twenty thousand rupees, thereby exempting them from penalty under Section 271E. The court found the transaction was bona fide, based on a financial institution's insistence to pay in cash. The loan repayment was genuine and not intended to avoid tax liability. Consequently, the penalty orders passed by the Assessing Officer and appellate authorities were set aside, with the substantial question of law decided in favor of the assessee.

View Source

← Previous Next →

HC held that the assessee demonstrated reasonable cause under ...

Taxpayer Wins Appeal: Cash Loan Repayment Deemed Legitimate Under Section 273B, Penalty Overturned

April 29, 2025

Case Laws Income Tax HC

You may also like:

Deemed dividend u/s 2(22))e) - repayment of loan or advance by the Company

Deemed dividend u/s 2(22)(e) is not taxable in the hands of the assessee company if it is not a shareholder in the companies that extended loans. It is chargeable to tax...

Penalty u/s 271E - repayment of the loans in question in cash - default u/s 269SS - reasonable cause - the repayment of advances from regular parties are identifiable...

Charitable purpose - Application of loan repayment allowability - The repayment of loan is not an allowable deduction against profit and gains of the business even under...

External Commercial Borrowings (ECB) – Repayment of Rupee loans - Circular

Penalty proceedings u/s. 271E - conversion of loan into redeemable convertible bonds and therefore, it was observed that the repayment of loan is other than the modes...

The ITAT dismissed Revenue's appeal, holding that penalty under s.271G for failure to furnish transfer pricing documentation cannot be levied against the German resident...

CBIC clarifies procedure for departmental appeals regarding interest/penalty under Section 128A of CGST Act. Where taxpayers have fully paid tax demands under Section 73...

Penalty u/s 271E - repayment of deposits in cash made by the assessee to her related persons - default u/s 269T - the burden entirely lay upon AO first to establish that...

Penalty u/s 271E - section 269T is applicable only on repayment of any loan or deposit taken by the assessee - at the time of repayment in cash there was no unsecured...

Penalty levied u/s 271(1)(c) - addition u/s 2(22)(e) - deemed dividend - While levying the penalty, the deeming provisions can be applied to a limited extent and instant...

Penalty u/s. 271E - violation of the provisions of Section 269T - Repayment of monthly instalment in cash to Tata Finance Corporation - as the assessee had not only...

Penalty levied u/s. 271D and 271E - The assessee has filed affidavits of the lenders who are agriculturist to substantiate that they have advanced cash loan for the...

Allowable expenditure versus Application of Income (Repayment of loan) - Payment made to the Marketing Board - progressive payments given to the Haryana State...

Unsecured loans treated as unexplained cash credits u/s 68. Interest paid on such unexplained loans also added to income. Assessee's contention of repayment of loans...

Quick Updates: