#tax penalty

The ITAT Patna upheld a Rs.20.5 lakh penalty under Section 271D read with Section 269SS, holding that cash loans between spouses attract liability and familial ties do not constitute reasonable cause. The ruling impacts anyone relying on family relations to avoid cash-loan penalties under the Income Tax Act.

ITAT Mumbai quashes a penalty under Section 271(1)(c) for procedural unfairness, holding that adjudicating an assessee's case based on another taxpayer's facts violates principles of natural justice. The ruling reinforces mandatory case-specific scrutiny in tax penalty proceedings.