9911796707
TMI Blog2014 (3) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... rein the assessee had accepted cash loans on various dates exceeding ₹ 20,000/- from relatives, penalty was held to be not imposable as held a family transaction, between two independent assessees, based on an act of casualness, specially in a case where the disclosure thereof was contained in the compilation of accounts, and which had no tax effect, established reasonable cause under section 273B. Also see SAINI MEDICAL STORE. [ 2005 (3) TMI 66 - PUNJAB AND HARYANA HIGH COURT]. Thus if the transactions are between relatives and without any malafide intention, then penalty is not leviable. In this case before us, it is merely a technical breach of law because assessee might not have taken any loan but to record the surrender ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were initiated. In response to the show cause notice it was mainly stated that the amount of ₹ 12.50 lakhs on account of cash found during the survey which was surrendered was recorded in the books of the assessee in the names of two sons in whose hands such income has been disclosed, therefore, this action was taken without any malafide since there is no loss to the Revenue and penalty proceedings were not attracted. The Assessing Officer did not find force in these submissions and levied a penalty u/s 271D of the Act. The assessee could not improve upon his case before the Ld. CIT(A), who confirmed the action of Assessing Officer. 4. Before us, Ld. Counsel for the assessee reiterated the submissions made before the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the fact that the cash transactions of the assessee were with the sister concern and these transactions were within the family and due to business exigency. A family transaction, between two independent assessees, based on an act of casualness, specially in a case where the disclosure thereof was contained in the compilation of accounts, and which had no tax effect, established reasonable cause under section 273B of the Act. Since the assessee had satisfactorily established reasonable cause under section 273B of the Act, he must be deemed to have established sufficient cause for not invoking the penal provisions of sections 271D and 271E of the Act against him. The deletion of penalty by the Tribunal was valid. While holding the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
