Repayment of cash loan by cheque doesn’t exonerate levy of penalty u/s 271D

Advertisement Ramakrishna Murali Vs ITO Ward-6(3)(1) (ITAT Bangalore) ITAT Bangalore held that penalty u/s 271D of the Income Tax Act is leviable on loan taken by way of cash. Notably, repayment of cash loan by way of cheque wouldn’t exonerate the assessee from levy of penalty. Facts- The assessee is an individual engaged in the business of wholesale trading in wines, liquor and other related products as a proprietor and under the name & style of M/s. Nanjundeshwara Wines. During assessment proceedings, it was noticed by the AO that assessee has taken unsecured loan by way of cash at ...