No Penalty u/s 271D for Loans via Account Payee Cheques: ITAT

DCIT Vs Sanjaykumar Haribhai Patel (ITAT Ahmedabad) Introduction: The Income Tax Appellate Tribunal (ITAT) in Ahmedabad recently ruled on an important matter concerning the  imposition of penalty under section 271D of the Income Tax Act, 1961. The case revolved around the penalty for exceeding cash transaction limits and whether such penalty can be imposed on loans taken through Account Payee Cheques. Analysis: The assessee, Sanjaykumar Haribhai Patel, had taken loans from certain individuals, all of which were done via Account Payee Cheques. The Revenue initiated a penalty under section 271D...