Penalty u/s 271D cannot be levied for cash deposited in bank by company director for making urgent payments to suppliers

CA Sandeep Kanoi Issue – Assessee is a private limited company engaged in the business of manufacturing of Casting. During the course of assessment proceedings AO noticed that Assessee has received cash loans on various days aggregating to Rs 8,89,000/- from Shri Ramusingh Badoria, the Director, of the Assessee. AO was of the view that the acceptance of loan in cash was in contravention of provisions of s. 269SS. The submissions of the assessee with respect to business exigencies was not found acceptable and accordingly he initiated penalty proceedings u/s 271D of the Act and thereafter ...