No penalty for accepting loan in cash from sister concern for making labour payments at far off places and there was an urgency to do so: Orissa HC
High Court of Orissa at Cuttack in the case of PCIT versus M/s Akash Infra-Com-Projects Pvt. Ltd. has held that no penalty u/s 271D of the Act shall be levied where the assessee company failed to comply with the provisions of section 269SS of the Act.
It was opined where the assessee had taken loan of Rs.1.70 crores in cash from its sister concerns and offered explanation that amounts were taken in cash for making labour payments at far off places and there was an urgency to do so, explanation offered by assessee was a reasonable explanation and, therefore, penalty imposed under section 271D of the Act r.w.s. 269SS of the Act was not justified.
The copy of the order is as under: