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TMI Blog2019 (11) TMI 1778X X X X Extracts X X X X X X X X Extracts X X X X ..... gh court in Commissioner of Income Tax vs. Idhayam Publications Ltd. [ 2006 (1) TMI 97 - MADRAS HIGH COURT ] also holds that such transactions between sister concerns having common directors in running account also does not attract the impugned penal provision. We take into account all these facts to conclude that the learned lower authorities have erred in penalizing the assessee on account of cash loans availed from his mother and wife in issue. The penalty in question stand deleted accordingly. - ITA No. 1088/Kol/2018 - - - Dated:- 27-11-2019 - SHRI P.M. JAGTAP, VICE-PRESIDENT AND SHRI S.S. GODARA, JUDICIAL MEMBER For the Appellant : Shri Soumitra Choudhury, Advocate For the Respondent : Shri Goutam Kr. Mondal, Addl. CIT-D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sums were cash loans. He further admitted that these loans were reflected in the creditors' P L account. It was further submitted that as on each occasion the transactions were less than Rs 20,000, the appellant was under the impression that the same were not prohibited under section 26955 of the IT Act. The Joint Commissioner, after considering the appellant submissions, did not accept the same and proceeded to levy penalty under section 271 D for violation of the provisions under section 26955 of the IT Act. During the appellate proceedings, the appellant reiterated its submissions made before the lower authorities. The appellant's contentions were carefully considered from all angles. From the appeal records I observe that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 occasions almost spanning the entire year. And not only is it so, but it extended to the succeeding financial year wherein the appellant has received a loan of a lakh of rupees each from the same 2 parties. It is also noteworthy to mention that on each occasion, in all the 14 transactions from both the parties, the sum so received were less than Rs.20,000. That the appellant has not received an interest or paid any is immaterial as the loan may be non-interest-bearing. The appellant has not submitted any gift deed in support of its claim that the transactions were gifts. The submission made before the Joint Commissioner during the penalty proceedings by the wife of the assessee, one of the creditor parties to the transaction, that Seagat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter and the appellant has also not produced any case law with respect to any point of debate on this facet of the issue. The law is quite clear and the section is crisply worded vide sub section (b) of section 269SS that on the date of taking or accepting such loan or deposit, any loan or deposit taken accepted earlier , the amount of the aggregate amount remaining unpaid .... for the purpose of counting limit of Rs 20,000 for the said section. In view of the above, the undersigned reaches in an unequivocal conclusion that the appellant deliberately took the sums under Rs 20,000. The aggregate amount of the cash loan taken was in complete violation and breach of the provisions of section 269SS. There is no attenuating circumstances or reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the impugned penalty of ₹2.50 lakh u/s. 271D of the Act affirmed in the CIT(A) s order under challenge. 4. Learned counsel vehemently contends during the course of hearing that both the lower authorities have erred in law as well as on facts in imposing the impugned u/s 271D penalty in respect of two cash loans/ gifts sums in case of mother and wife; respectively. His case accordingly is that the clinching fact of the said two parties turning out as family-members itself forms a reasonable cause for not levying the impugned penalty. The Revenue strongly submits on all the lower authorities action invoking the impugned penalty. We find no reason to sustain the penalty in issue. The fact remains that the two sum(s) in question o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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