No section 269SS & 269T if reasonable cause for accepting/repaying loan in cash

Sunil M. Bhide Vs Addl. CIT (ITAT Pune) It is seen from the penalty order that the assessee pleaded before the AO that he started construction of a commercial building on his plot. The construction work was halted because of paucity of funds. The said plot of land along with part construction was leased out to one company, which is related with the assessee’s family members. As the construction was lying pending and the assessee was to complete the same, the company applied for a loan in the State Bank of India. The loan was not disbursed because of certain bank formalities. The assessee rec...