ITAT deletes Penalty u/s 271D of Income Tax Act on Availability of Reasonable Cause to Prove Bonafide Act of

The ITAT cancelled the penalty under section 271D of the Income Tax Act, citing reasonable cause and the assessee's bona fide actions. The case involved non-compliance with the law's cash transaction rules due to genuine financial difficulties faced by the assessee. The ITAT emphasized that the penalty shouldn't be automatic but must consider the circumstances, including the assessee's financial strain and efforts to comply. This decision underscores the importance of proving reasonable cause in penalty cases under the Income Tax Act.