No penalty on cash loan taken by AOP from Members to meet urgent needs

CIT Vs Panchsheel Owners Associations (Gujarat High Court) While completing the assessment, the Assessing Officer has noticed that the assessee, an AOP, borrowed loan of Rs. 40,00,000/- from Smt. Shantaben A. Patel, main promoter of the AOP, in cash for expeditious acquisition of land, in violation of section 269SS of the I.T. Act. Therefore, penalty of Rs. 40,00,000/- was levied under section 271D of the I.T. Act. CIT(AI deletes the penalty. ITAT observed that Genuineness of the transaction has not been disputed by the lower authorities, so also importance and urgency of raising cash loan, it...