cash transactions penalty provision applicabel

sir, cash loan payment transactions dt:10-10-24 it assessee cash loan to relative(name Mr.A) rs:10 lacs amount through on cash mode paid After another cash loan repayment transactions dt:10-12-24 it assessee cash loan from relative rs:10 lacs name Mr.A)amount repayment  received through on bank channel mode. Query; Above transactions viloation of it rules and penality provision applicable in it act.

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  section 44AD

Assessee is in retail trade with turnover of Rs.200 lakhs. It is 100% cash business and deposits cash from sales into the bank. He  offers 8% of turnover as income ( Rs. 16 lakhs) u/s 44AD of the Act. In the bank account there is closing balance of Rs.60 lakhs . The assessee uses the  Rs.45 lakhs to purchase a plot of land. The assessee opines that since he has offered 8% as income as required u/s 44AD the IT department cannot question the excess money of Rs.44 lakhs (60 - 16) standing in bank account and free to utilise…

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