9911796707
TMI Blog1994 (11) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment proceedings, the transaction was accepted as genuine by the Income-tax Officer. However, he opined that provisions of section 269SS have been violated and, therefore, he initiated proceedings for levying penalty under section 271D of the Act. 3. In the penalty proceedings, it was pleaded, inter alia, that he amount was received in cash on account of exigencies, because the last date for concession on purchase of Matador in the Gwalior Fair was 14th January, 1989, and the assessee wanted to avail that benefit.The assessee had also filed an affidavit of his father stating that the amount was given by him to his son, that is, the assessee, the purchasing the Matador and the amount was directly deposited by him in the Bank for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehicle and as such no penalty is leviable under section 271D. He has also submitted that for the purpose of availing the concession at Gwalior Fair, the amount was given in cash and for that reason also no penalty is leviable. The learned counsel for the assessee has also submitted that the assessee was a young man of 21 years and was unemployed. His father had retired as a Sub-engineer and had received retirement benefits. The father and the son were living together. Since the assessee was unemployed, he purchased a Matador for Rs. 1,30,658 on 11th January, 1989, and for the purchase of a vehicle his father contributed Rs. 70,000. For this contribution the father of the assessee had to encash the F.D. receipt prematurely. On the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some earnings. It appears that his father had assisted him by providing Rs. 70,000, so that his son may settle in life. There is no material on record to suggest that the assessee was under an obligation to return the said amount. Unless the assessee was obliged to return the said amount, the amount received by him cannot be treated neither a loan nor a deposit. In the given situation, I am of the opinion that provisions of section 269SS and 271D of the Act are not at all attracted. That apart section 273B provides that no penalty shall be imposable on the person or the assessee, for any failure referred to in the provisions mentioned in the section, which includes section 271D, if he proves that there was reasonable cause for the said fail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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