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2020 (4) TMI 227 - AT - Income TaxPenalty u/s 271D - contravention of Section 269SS - cash loan taken by the assessee - AR submitted before us, the assessee had borrowed cash loan from his own brother in law due to unavoidable circumstances - HELD THAT:- It is not in dispute that the assessee has obtained the cash from his own brother-in-law. It is also not in dispute that the assessee obtained the cash loan for the purpose of acquiring immovable property wherein he was constrained to resciend the agreement in the event the balance purchase consideration is not paid within the stipulated time and in such event the transaction has to be reversed. Further, there is nothing on record to suggest that the transaction is not genuine and bona fide. In this situation, the decisions relied by AR supports the case of the assessee. In the case of ITO vs. Trilokchand [2002 (12) TMI 195 - ITAT AMRITSAR] it has been categorically held that when the assessee recieves cash loan from his wife for acquiring immovable property it will not result in commercial transaction and there is no breach of provisions of section 269SS of the Act and accordingly penal provisions under section 271D of the Act cannot be invoked. There existed reasonable cause for the assessee for accepting cash loans from his own brother-in-law and since there is nothing to suggest that the transaction is a commercial transaction and is not genuine, we hereby direct the Ld. AO to delete the penalty levied for ₹ 6 lakhs invoking the provisions of section 271D - Decided in favour of assessee.
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