Under special circumstances, if the taxpayer is able to provide a legitimate reason for the cash transaction to the assessing officer, he could avoid paying the penalty.
In a recent case, the Income-Tax Appellate Tribunal (ITAT), Delhi bench, held that cash gifts from brother and sister can’t be treated as ‘unexplained’ by the assessing officer, especially if they were given for a medical emergency. The case, however, once again highlights the need for taxpayers to know the rules and limits that govern cash transactions.
Loans and their repayment
Sections 269SS and 269T deal with cash payments and repayment of loans and deposits. Maneet Pal Singh, partner, I.P. Pasricha & Co says, “A person can’t accept a loan, deposit, or any other specified sum from another person except
First Published: Aug 18 2022 | 9:17 PM IST