Income Tax : The provisions regulate acceptance, payment, and receipt of cash beyond specified limits. They impose strict penalties to discoura...
Income Tax : Covers the latest cash withdrawal, deposit, and loan limits. Takeaway: exceeding thresholds can trigger TDS, penalties, and blocke...
Income Tax : Explains when director cash infusions qualify as current account transactions and why genuine business support may fall outside Se...
Income Tax : The Tribunal held that penalty under Section 271DA cannot be imposed when the assessment order lacks recorded satisfaction of a 26...
Income Tax : Summary of income-tax rules on cash limits, including disallowance of cash expenditure, restrictions on loans, deposits, receipts,...
Income Tax : DON’T √ Accept cash of Rs. 2,00,000 or more in aggregate from a single person in a day or for one or more transactions r...
Income Tax : It is suggested that there should be a positive provision under the I.T. Act that any transaction involving more than Rs.3,00,000/...
Corporate Law : High Court upheld conviction under Section 138 NI Act, holding that contradictory defence evidence failed to rebut statutory presu...
Income Tax : ITAT Delhi quashed a ₹65 lakh penalty under Section 271D after finding that no assessment was made for the relevant year and no ...
Income Tax : ITAT Delhi held that the PCIT exceeded jurisdiction by introducing issues not mentioned in the Section 263 show-cause notice. The ...
Income Tax : ITAT Delhi deleted penalties imposed for alleged cash transactions after holding that the electronic evidence relied upon by the R...
Income Tax : ITAT Mumbai ruled that once reassessment proceedings are quashed as void ab initio, the satisfaction recorded therein for initiati...
Income Tax : Notification No. 8/2020-Income-Tax- CBDT has notified Other electronic modes by inserting New Income TAx Rule 6ABBA. It also amend...
Income Tax : In the Income-tax Rules, 1962, in Appendix II, in Form No. 3CD, for serial number 31 and the entries relating thereto the followin...
Fema / RBI : Section 269SS and 269T of the Income Tax Act, 1961, the requirements under the Income Tax Act, 1961, as amended from time to time,...
ITAT held that the obligation to receive cash was rooted in an agreement executed before the 2015 amendment to Section 269SS. Since reasonable cause existed, penalty under Section 271D was not sustainable.
The Court held that violation of the ₹20,000 cash-loan limit under tax law attracts only penalty and does not void the debt. Cheque-bounce prosecutions under Section 138 NI Act remain valid despite such breaches.
Since the assessment order did not refer to initiating penalty under Section 271D, the Court held the penalty void. This reinforces that penalty jurisdiction arises only from recorded satisfaction.
The Tribunal condoned a 960-day delay after finding that the assessee’s reliance on VSV settlement and pending rectification was a bona fide cause. It ruled that penalty under Section 271D is independent of quantum proceedings. The penalty appeal was wrongly dismissed as infructuous and has been remanded for fresh decision.
CIT(A) set aside penalties imposed for violations of Sections 269SS and 269T, as they were issued beyond the statutory limitation period. The ruling reaffirms that late penalty orders are invalid even if violations occurred.
The Tribunal held that penalty under Section 271DA cannot be imposed when the assessment order lacks recorded satisfaction of a 269ST violation. The ruling confirms that satisfaction by the Assessing Officer is a mandatory precondition.
Summary of income-tax rules on cash limits, including disallowance of cash expenditure, restrictions on loans, deposits, receipts, repayment rules, electronic payment requirements, and penalties for non-compliance under Sections 40A(3), 269SS, 269ST, 269SU and 269T.
ITAT Chandigarh deleted a Rs.20 lakh penalty levied under Section 271D for a cash deposit violating Section 269SS. The Tribunal ruled the deposit was a temporary parking of funds by the father for security, not a loan or deposit.
ITAT Dehradun accepted ₹15 lakh from poplar tree sales as explained income and ruled that Section 115BBE applies prospectively from 1 April 2017. Tribunal granted partial relief, deleting major additions made on demonetisation cash deposits.
The Mumbai ITAT deleted the interest disallowance, applying the principle of consistency because the Revenue had previously accepted the assessee’s classification of net interest income under Income from Other Sources in earlier scrutiny assessments. The court found no justification to deviate from this accepted treatment for the current year.
