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TMI Blog2024 (7) TMI 1430X X X X Extracts X X X X X X X X Extracts X X X X ..... CHENNAI] wherein, the Tribunal, while deciding the issue by placing reliance in the case of Ms. Nanda Kumari [ 2019 (1) TMI 413 - MADRAS HIGH COURT] held that no penalty u/s 271D of the Act is attracted if the cash obtained from family members as gift. The order of the ld. CIT(A) in confirming the penalty levied under section 271D of the Act is not maintainable. Accordingly, we direct the Assessing Officer to delete the penalty levied under section 271D - Decided in favour of assessee. - Shri S.S. Viswanethra Ravi, Judicial Member And Shri S.R. Raghunatha, Accountant Member For the Appellant : Shri Shrenik Chordia, C.A. For the Respondent : Shri R.V. Aroon Prasad, Addl. CIT ORDER PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER: This appeal fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans were obtained from family members. The ld. AR drew our attention to the decision of ITAT in the case of Mani Subdaram v. ITO in ITA No. 899/Chny/2023 dated 07.02.2024 at page 24 to 29 of the paper book. The ld. AR, referring to para 6 of the order, argued that the ITAT, Chennai Bench held that no penalty is leviable as the loan in cash if availed from family members. He prayed to cancel the penalty levied by the Assessing Officer and confirmed by the ld. CIT(A). 6. The ld. DR Shri R.V. Aroon Prasad, Addl. CIT relied on the order of the ld. CIT(A). 7. Heard both the parties, perused the material available on record. At the outset, we note that the Assessing Officer in the assessment order clearly recorded regarding cash deposits in ICICI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s mother passed away and produced death certificate. Moreover, the assessee has shown reasonable cause for receiving money towards purchase of machineries. Thus, we are of the opinion that the explanation offered against show cause notice before the authorities below were reasonable and therefore, levy of penalty under section 271D of the Act is untenable. Moreover, on an identical facts and circumstances in similar issue, in the case of Ms. Nanda Kumari v. ITO (supra), the Hon ble Jurisdictional High Court has also observed and held as under: 9. In our considered view, the crucial aspect to be considered is as to whether the assessee had shown reasonable cause for having received money in cash in contravention of the provisions of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A), who dismissed the appeal and confirmed the order passed by the Assessing Officer. The assessee filed an appeal before the Tribunal, which allowed the assessee's appeal and while doing so, the Tribunal followed the decisions (i) of the Tribunal in the case of M.Raju Vs. ACIT [ITA.No.899/Mds/2006]; (ii) of the Pune Bench of the Tribunal in the case of ITO Vs. Sunil M. Kasliwal [reported in (2005) 94 ITD 281]; and (iii) of this Court in the case of CIT Vs. http://www.judis.nic.in Lakshmi Trust Co. [reported in (2008) 303 ITR 99], and held that in the facts and circumstances of that case, the levy of penalty was not warranted. The Tribunal further held that the transaction between the father in law and the daughter in law was a genuine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the transaction in the instant case is between the assessee and her maternal uncle and aunt and there is nothing on record to show that the transaction lacks bona fides or the assessee came forward with a false case. In the result, we are of the considered view that the case on hand does not warrant levy of penalty under Section 271D of the Act. 14. Accordingly, the appeal filed by the assessee is allowed and the order passed by the Tribunal is set aside. The substantial questions of law are answered in favour of the assessee. No costs. Since facts are identical and respectfully following the decision of the Hon ble Jurisdictional High Court in the case of Ms. Nanda Kumari v. ITO (supra), we direct the Assessing Officer to delete the pena ..... X X X X Extracts X X X X X X X X Extracts X X X X
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