12 February 2013
there are cash loan transactions between partners and firm and shown as loans from partner on the liability side , the jcit has issued a notice u/s 271D and 271E as to why penalty would not be imposed on such transactions during the Asst year 2009 10
13 February 2013
You have not mentioned your query. In my view penalty is imposable for contravention of the provisions of Section 269SS. If loan is repaid also in cash then penalty is imposable u.s. 271E. My professional colleagues may opine on whether my view is correct or if there is a way out.
However, if the assessee can prove strongly and perfectly that transaction by cash was unavoidable and payment by cheque/bank was not possible then may get some relief.
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