9911796707
|
Home
Issues: Whether provisions of section 269SS apply to transactions between family members? Whether penalty under section 271D is leviable for failure to comply with section 269SS?
Summary: Facts: The assessee obtained loans from his wife for constructing a house, not in conformity with section 269SS. Penalty was levied under section 271D, upheld by the Commissioner (Appeals). Held (Per Accountant Member): Section 269SS applies to transactions between spouses. Although the provisions apply, mitigating circumstances existed. The wife's funds were partly through cheques, and the husband received only a portion directly. The overall intent was not to violate the law, thus a reasonable cause under section 273B existed, leading to deletion of the penalty. Held (Per Judicial Member): Section 269SS applies to deposits or loans involving debtor-creditor relationships. In this case, the transaction between husband and wife for house construction was not commercial. The funds were a joint venture for the family, without interest or promise of repayment, falling outside the legislation's scope. Considering the circumstances, the penalty was not applicable, and a reasonable cause under section 273B existed for penalty deletion.
|
