No penalty for cash loan from Directors for Business Exigency: ITAT Chennai

Pearl Beach Promoters P. Limited Vs Assessing Officer (ITAT Chennai) In the case of Pearl Beach Promoters P. Limited vs. Assessing Officer, ITAT Chennai ruled that penalties under sections 271D and 271E were not applicable to the company. These penalties were proposed because the company had received cash loans from its directors and related entities, and also repaid some loans in cash. The company argued that these loans were necessary to meet urgent expenses at remote project sites where banking facilities were inadequate. Despite having sufficient funds in its bank accounts, the company nee...