HC upheld penalty for Cash Loan exceeding Rs. 20000 Taken & repaid

M. Sougoumarin Vs ACIT (Madras High Court) The Assessing Officer found that the fact that the assessee had taken and repaid loans in cash was admitted. The Assessing Officer observed that the loans and repayments had not been accounted for in the regular books of accounts of the assessee or the firm in which the assessee was a partner and even if so recorded, no business exigency or urgency had been established to follow a prolonged and persistent system of accepting and repaying loans only in cash. The Assessing Officer found that the assessee could not claim to have a reasonable cause contem...