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TMI Blog2018 (6) TMI 1031X X X X Extracts X X X X X X X X Extracts X X X X ..... een levied - Penalty levied u/s.271D & 271E deleted - Decided in favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... e record of assessment of the said year. As assessee was having a reasonable cause for taking such amount which was not under an obligation to repay, the provision of section 269SS is not attracted and also having found the surplus cash by assessee subsequent in the month of August, 2007 had returned such amount to his father. So similarly provision of Section 269T is also not attracted in case of the assessee." 4.1. The Jt.CIT held that there is a violation of the provisions of section 269-SS and section 269-T warranting levy of penalty under s.271-D and 271-E respectively. Accordingly, penalty of ₹ 1 lakh each was imposed under s.271-D and 271-E of the Act separately. 5. The assessee approached the CIT(A) for relief against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f ₹ 4.35 lakhs in cash from its sister concern and later on a sum of ₹ 1 lakh was repaid in cash. The tribunal held that this was a transaction between two business concerns constituted by the family members and both the firms were having a common partner, therefore, transfer of cash by one firm to another would operate as a reasonable cause. In the instant case the assessee was not able to show of being prevented by any reasonable cause in not accepting the advance through account payee cheque or bank draft and there was no contention to that effect. Therefore, after considering the totality of the facts and circumstances of the case, in my considered opinion, the assessee was not able to establish any genuine and reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case in hand. While allowing the assessee's appeals, the following was observed by the said Bench. "Going through the facts of case before us, we are of the view that the transaction between son in law and father in law for giving a support and help as contended by Ld. Counsel and not denied by revenue, in law was not a loan or deposit in stricter sense of section 269SS of the Act and it was only a financial support. Even it is not the allegation that the father in law of assessee has charged any interest on the above loan and hence, this is merely a financial support to son in law by his father in law. Once this is the position, the transaction does not fall in the ambit of section 269SS of the Act. Accordingly, these appeals of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bted by the Revenue authorities, the breach is to be treated as a mere technical or venial breach. 13. We notice that the requirement of Section 273B is for the assessee to prove that there was a reasonable cause for its having failed to abide by the provisions of Section 269SS. As emerges from the record, not only the substantiating evidence like 7/12 Extracts were produced, but, also additionally, transactions were reflected in the accounts of assessee and the advancement of loan to the assessee had been reflected in the books of account of those persons from whom the loan had been received. The identity of those persons has also been well established. The assessee also had given satisfactory reason for taking such loan. His bona fide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m penalty is prescribed, the authority competent to impose the penalty will be justified in refusing to impose penalty, when there is a technical or venial breach of the provisions of the Act or where the breach flows from a bona fide belief that the offender is not liable to act in the manner prescribed by the statute." 16. We find that both the authorities have rightly construed the provisions and applied the law to the facts and the surrounding circumstances aptly. Tax Appeal, resultantly, deserves no further consideration and hence, the same is dismissed." 10. Taking into consideration of the entire facts of the matter, we find that the ratio laid down in the said judement is squarely applicable to the instant case and we find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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