Family Cash Transactions Cannot Attract Sections 271D & 271E Penalty: ITAT Rajkot

Manish Narendrabhai Gandhi Vs ACIT (ITAT Rajkot) The Income Tax Appellate Tribunal (ITAT), Rajkot, allowed two appeals filed by the assessee and deleted penalties imposed under Sections 271D and 271E of the Income-tax Act, 1961, holding that cash transactions between close family members do not constitute loans or deposits within the meaning of Sections 269SS and 269T. The first appeal related to a penalty of ₹10,08,000 imposed under Section 271D for alleged violation of Section 269SS. During penalty proceedings, it was found that the assessee had accepted cash receipts aggregating to ₹10,...