No Penalty for Loan in cash for sisters marriage which was repaid through RTGS

Shri Venkat Narayana Raju Pasuparthy Vs Addl. CIT (ITAT Hyderabad) Assessee has stated before the CIT (A) that the loans were taken in cash on account of his sister’s marriage and that the loans were repaid through banking channels by way of RTGS and therefore, the genuineness of the loan and the identity of the creditor has been established. We find that the penalty u/s 271D is subject to the provisions of section 273B of the Act. Therefore, penalty u/s 271D is not automatic and when the assessee provides a reasonable explanation, the penalty is not leviable. The assessee’s contention tha...