No Section 271D Penalty if cash loan was taken from Director to meet urgent requirements of company

JICE Academy for Excellence Pvt. Ltd Vs NFAC (ITAT Bangalore) ITAT Bangalore held that levy of penalty u/s 271D, for violation of provisions of section 269SS of the Income Tax Act, is unwarranted as the loan was advanced by the Executive Directors to the company in cash to meet the urgent requirements of the company. Facts- During the scrutiny proceedings, the Assessing Officer noted the cash loan received from the 2 Directors viz. Akhil Anand Biraj of Rs. 14,62,470/-and K V Kanaghavi of Rs. 27,00,000/-. Hence, as per Sec. 271D of the Act, the Joint Commissioner of Income Tax, Range-4(1), Bang...