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2019 (11) TMI 1778 - ITAT KOLKATAPenalty u/s 271D r.w.s. 269SS - loans availed from family-members - two cash loans/ gifts sums in case of mother and wife; respectively - HELD THAT:- We find no reason to sustain the penalty in issue. The fact remains that the two sum(s) in question of ₹1 lakh and 1.30 lakh have come from assessee’s mother and wife; respectively. Case law Commissioner of Income Tax Vs. Natvarlal Purshottamdas Parekh [2008 (2) TMI 287 - GUJARAT HIGH COURT] holds that such kind of amount(s); which are mere book entry transactions on behalf of family members does not violate the provision of sec. 269SS and 269T. Hon'ble Madras high 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.
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