9911796707
TMI Blog2017 (10) TMI 1405X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 271D of the Income Tax Act, 1961 (in short 'the Act'). 3. The assessee is an individual. In the course of assessment proceedings of the assessee for the Assessment Year 2010-11, the Assessing Officer noticed that the assessee had taken the following cash loan totaling to Rs. 38,70,000 in cash in violation of provisions of Sectin 269SS of the Act. 1. Smt. Bhagyavanti : Rs.14,00,000. 2. Sri Prakash Chand Mehta : Rs.21,70,000. 3. Sri Prakash Chand Mehta (HUF) : Rs.3,00,000 Rs.38,70,000 Under Sec.269SS of the Act, no person shall accept loan above Rs. 20,000/- in cash. Under Sec.271 of the Act, any person who contravenes the provisions of Sec.269SS of the Act is liable to pay penalty equal to the sum of loan acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion had been taken by the Assessee from her mother, from the HUF in which she was a member and Karta of the HUF in his individual capacity. It was submitted by him that the transaction of loan between close relatives does not attract the provision of section 269SS of the Act and in this regard placed reliance on the decision of ITAT, Kolkata in the case of Dr.B.G.Panda vs DCIT [2000] 111 Taxman 86 (Cal)(MAG). He also relied on several other judicial pronouncements in support of his claim that transactions of loan in cash between near relatives cannot attract imposition of penalty u/s.271D of the Act. The learned DR relied on the order of the CIT(A). 7. We have considered the rival submissions. The facts as decided by ITAT Kolkata in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tendency to disturb the peace of families. to promote domestic broils, and to weaken or to destroy the feeling of mutual confidence which is the most enduring solace of married life. In the instant case, the wife gave money to husband for construction of a house which was naturally a joint venture for the property of the family only. This transaction was not for commercial use. The amount directly received by the husband. i.e .. the assessee. was to the extent of Rs. 17.000 only and the balance amount of Rs. 26.000 was given by payment directly to the supplier of the material required for the construction of the house. Though the expenditure was apparently incurred by the husband being the karta/head of the family, it could not be said th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere the husband had taken the cash of Rs. 70,000 from his wife for the purpose of investment in the acquisition of immovable property. The Assessing Officer had levied the penalty under section 271D which was cancelled by the Income-tax Appellate Tribunal holding as under : "Even keeping in view the contents of the Departmental Circular No. 387 [1985] 152 ITR (St.) 1), it was never the intention of the Legislature to punish a party involved in a genuine transaction. Therefore, by taking a liberal view in the instant case, the assessee had a reasonable cause within the meaning of section 273D. Thus, keeping in view the entire facts of the instant case, and also keeping in view the intention of the Legislature in enacting the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d." 10. The ratio of the above decision of the Income-tax Appellate Tribunal, Amritsar Bench, would be squarely applicable to the facts of the assessee's case. Here also, the daughter and member of the HUF have given money for certain specific purpose. The source and genuineness of the loan has been accepted by the AO. The cash loans in question therefore cannot be said fall within the mischief of Sec.269SS of the Act as near relatives cannot be said to be "Other person" within the meaning of Sec.269SS of the Act. In any event in the circumstances of the case, there was reasonable cause for accepting loans in cash. 11. In the case of CIT v. Sunil Kumar Goel [2009] 315 ITR 163/183 Taxman 53 , the Hon'ble Punjab and Haryana High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
