No Section 271D Penalty on Cash Loan between family members: ITAT Bangalore

Smt. Deepika Vs ACIT (ITAT Bangalore) In the case of Smt. Deepika vs. ACIT, the Income Tax Appellate Tribunal (ITAT) Bangalore dealt with the issue of a penalty imposed under Section 271D of the Income Tax Act for cash loans totaling ₹38.7 lakh received by the assessee during the Assessment Year 2010–11. The Assessing Officer imposed the penalty, citing a breach of Section 269SS, which prohibits accepting loans over ₹20,000 in cash. The assessee explained that the cash was taken from close relatives—her mother, a Hindu Undivided Family (HUF), and the Karta of the HUF in his individual ...