Penalty under section 271D Not Sustained for Loans via Banks: ITAT

Vijayaben G. Zalavadia Vs JCIT (ITAT Ahmedabad) Introduction: The Income Tax Appellate Tribunal (ITAT) Ahmedabad recently ruled in the case of Vijayaben G. Zalavadia Vs JCIT, making significant determinations regarding penalties imposed under Section 271D and the conditions under which Section 269SS is applicable. Background: The assessee, Vijayaben G. Zalavadia, is an agriculturist who accepted a loan of Rs. 1,70,000/- from The Berna Gamni Seva Sahkari Mandali Ltd. The Assessing Officer penalized the assessee under Section 271D for contravention of Section 269SS of the Act, asserting that t...