Penalty not leviable for cash loan taken/paid to comply re-settlement scheme of BIFR

Monarch Dyestuff Industries And Exports Ltd. Vs JCIT (ITAT Ahemdabad) Conclusion: Assessee was not liable for penalty under section 271D and 271E for availing cash loans/deposits in violation of section 269SS and 269T as it had availed the facility in order to re-establish itself, and for fulfilment of promises given for the purpose of BIFR which was a reasonable cause foe not levying penalty. Held: Assessee had obtained loan/deposits in cash and repaid alleged loan/deposits in cash, thus, violated provisions of section 269SS and 269T. AO had imposed penalty under section 271D and 271E. It was...