Penalty not justified for loan received in cash and immediately refunded

Advertisement Income Tax Officer Vs Mrs. Lakshmi Vishwanath (ITAT Delhi) Briefly the facts of the case are that the A.O. in the assessment order noted that assessee was asked to explain source of the cash deposit in her bank account maintained with State Bank of India. The assessee attended the proceedings before A.O. and filed reply along with letter of Mr. W. Sutong that Shri P.V. Iyer was his family friend and in July, 2009, Shri P.V. Iyer informed Mr. W. Sutong about his housing loan. On 8th September, 2009, Mr. W. Sutong deposited Rs. 16 lakhs, the amount received out of his business r...