No Section 271D Penalty for Cash Loans from Close Relatives: Reasonable Cause

Mani Sundaram Vs ITO (ITAT Chennai) No section 271D penalty on cash loan from close relatives due to reasonable cause which subsequently treated as gifts The case of Mani Sundaram Vs ITO (ITAT Chennai) revolves around the imposition of penalty under section 271D of the Income Tax Act, 1961, for availing cash loans from close relatives. The appellant, Mani Sundaram, proprietor of M/s. Surabi PVC Pipes, received loans from family members, which were subsequently treated as gifts.  The Assessing Officer initiated penalty proceedings under section 271D of the Act due to the receipt of cash loans ...