ITAT Relieves Cooperative Society of ₹1 Crore Penalty u/s 271E for Loan Repayment in Cash

The ITAT has granted relief to a cooperative society by waiving a Rs. 1 crore penalty imposed under Section 271E for cash loan repayments. The case involved a cooperative society that repaid loans in cash, which violated the cash transaction restrictions under the Income Tax Act. However, the ITAT found that the society had reasonable cause for making the cash repayments and allowed the penalty waiver. This decision underscores the Tribunal’s approach to ensuring fair treatment for taxpayers, particularly when there is no willful intent to evade tax and the violation is minor or unintentional.