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TMI Blog2014 (4) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... cause - the confirmation letter from the father cannot be completely brushed aside, especially when the transaction is between a very close relationship i.e., father and son – thus, the penalty levied u/s 271E cannot be sustained in view of the reasonable cause, as envisaged in section 273B – thus, the order of the CIT(A) set aside – Decided in favour of Assessee. - ITA No.6185/Mum./2012 - - - Dated:- 11-4-2014 - SHRI D. KARUNAKARA RAO AND SHRI AMIT SHUKLA, JJ. For the Appellant : Mr. Anil Thakrar For the Respondent : Mr. R.K. Sahu ORDER Per: Amit Shukla: The present appeal has been preferred by the assessee challenging the impugned order dated 3rd August 2012, for the assessment year 2008 09, passed by the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent financial years i.e., Rs. 15,000 in the financial year 2004 05 and Rs. 50,000 on 16th October 2006 and Rs. 50,000 on 25th April 2007. The said loan was repaid in cash in this year. The reason for re payment of loan in cash was that the assessee s father required immediate fund for his medical treatment due to his illness. The Assessing Officer rejected the assessee s explanation on the ground that no documentary evidence was filed in support of this reasoning that he had to repay the loan in cash to his father for medical treatment. He held that there is a clear cut violation of the provisions of section 269T and accordingly, he levied the penalty of Rs. 1,15,000 under section 271E. 3. Before the learned Commissioner (Appeals), the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, such a transaction within the family, should not be adversely viewed and penalty should be deleted in view of the provisions of section 273B. 5. Learned Departmental Representative, on the other hand, relied upon the order of the learned Commissioner (Appeals) and submitted that the provisions of law are amply clear that if the loan has been repaid in cash, then provisions of section 269T are applicable and, accordingly, penalty under section 271E is to be levied in such a case. The assessee s explanation about reasonable cause cannot be accepted as no evidence has been filed by the assessee to show the urgent need for re payment of loan in cash for medical treatment of his father. The reasonable cause has to be proved by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce was given, however, a letter of confirmation was filed by his father reiterating the same cause. Under these facts, the said confirmation letter from the father cannot be completely brushed aside, especially when the transaction is between a very close relationship i.e., father and son. Under these circumstances, we are of the considered opinion that penalty of Rs. 1,15,000 levied under section 271E cannot be sustained in view of the reasonable cause, as envisaged in section 273B. Consequently, we set aside the impugned order passed by the learned Commissioner (Appeals) and allow the ground raised by the assessee. 7. In the result, assessee s appeal is allowed. (Order pronounced in the open Court on 11.4.2014) - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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