9911796707
TMI Blog2011 (10) TMI 776X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessee is against the order of CIT(A) confirming the levy of penalty at Rs.4 lakhs u/s. 271D of the Act for violation of provisions of section 269SS of the Act. 3. The brief facts are that assessee received advance of Rs. 5 lakhs from Smt. Jayanti Ghosh as under:- Date Mode of payment Amount 13.12.2002 By Cash source being cash withdrawn by Smt. Jayanti Ghosh Rs.3,00,000 06.01.2003 Amount was paid to one Sri Manas Das through Bearer cheque no.74181 as directed by the assessee to clear his business dues. Rs.1,00,000 07.02.2003 Through bearer c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would not violate the provisions of section 269SS and 269T of the Act, if the assessee receives amount from the family members as loans or deposits, reason being among the family members, the loans and deposits cannot be construed strictly in the terms of these provisions. Even Hon ble Madras High Court in the case of Cit Vs. Idhayam Publications Ltd. (2006) 285 ITR 221 (Mad.) as held that the transactions between relatives cannot be termed as loan or deposit particularly when no interest is being charged on the transactions. In the present case also the assessee has not paid any interest to Smt. Jayanti Ghosh and it is also a fact that she is related to assessee. Hon ble Gujarat High Court in the case of Natvarlal Purshottamdas Parekh (su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m family members except the amount of NSCs and other cash loan and that cannot be treated as loan or deposits for the purpose of section 269SS. Coming to the nature of payments, most of the amounts, viz., Rs. 5,41,450 has been repaid by the assessee by depositing the different sums on behalf of his family members in PPF Rs. 25,523 has been paid towards LIC premium. The amounts of advance tax, income-tax as well as wealth-tax will be around Rs. 80,000 and again gift from one family member to other family member comes to Rs. 1.09 lakhs and Rs. 16,000 is again journal entry for allocation of share for household expenses. This again shows that no amount was paid by the assessee in cash to any of the family member. These facts as mentioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee receives amounts from the family members and repays to different family members. Heard Mr. B. B. Naik, learned standing counsel for the applicantRevenue and Mr. Varun Patel for Mr. S. N. Soparkar, learned senior advocate for the respondent-assessee. As can be seen from the findings reproduced hereinbefore the Tribunal has appreciated the evidence on record and arrived at certain findings based on such appreciation of evidence. The position in law is well-settled that whether evidence is correctly appreciated or not cannot give rise to a question of law unless and until such findings are challenged as being contrary to the evidence on record or recorded after omitting to consider relevant evidence and taking into consider ..... X X X X Extracts X X X X X X X X Extracts X X X X
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