9911796707
TMI Blog1998 (3) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... which was naturally a joint venture for prosperity of family and transaction did not involve any interest element and there was no promise to return amount with or without interest, provisions of section 269SS would not apply and it could be said that there was reasonable cause within meaning of section 273B and, thus, no penalty was leviable for violation of provisions of section 269SS - Held, yes FACTS The assessee constructed a house and for this purpose he obtained certain loans aggregating to ₹ 43,000 from his wife. These loans were taken either in cash or by bearer cheques and were, thus, not in conformity with the provisions of section 269SS. After hearing the assessee, the Deputy Commissioner levied penalty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot apply at all on account of transaction being between the husband and the wife, there were several mitigating circumstances in the instant case. The amounts in question had emanated from the bank pass book of the wife and to the extent of ₹ 31,300 by cheques though not by issue of account payee cheques. The amount directly received by the assessee was to the extent of ₹ 17,000 only and the balance amount of ₹ 26,000 was given by payment directly to the suppliers of materials required for construction of the house of the assessee. Though the expenditure was incurred for the construction of the house by the husband, it could not be said that the wife could not have any interest of her own in this house being constructed. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the depositor as per the intention of the Legislature. The communication/transaction between the husband and wife are protected from the legislation as long as they are not for commercial use. Otherwise, there would be a powerful 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 ₹ 17,000 only and the balance amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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