Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 665 - AT - Income TaxLevy of penalty u/s 271D of the Act – Cash loan taken for purchase of property - Held that:- Assessee relied upon MOU dated 2.7.2008 - the assessee alongwith Mr. R.M. Zafarullah had jointly invested money to purchase property and thereafter share profit from its sale - The property was purchased on 11.7.2008 in the name of assessee - the assessee repaid the amount invested by Mr. R.M. Zafarullah. Mr. R.M. Zafarullah has sworn an affidavit dated 27.06.2011 which was produced before the AO wherein he has admitted the execution of MOU for purchase of property – AO in assessment order dated 26.09.2011 has accepted the contention of assessee with regard to investment of Mr. R.M. Zafarullah in the property - There is nothing on record to show that the assessee has taken loan from Mr. R.M. Zafarullah - Penalty proceeding have been initiated by drawing inferences from the transaction between the assessee and Mr. R.M. Zafarullah - penalty u/s. 271D has been levied on assumption that the assessee has violated the provisions of section 269SS by taking cash loan from Mr. R.M. Zafarullah - the penalty cannot be levied on the basis of presumptions and probabilities – thus, penalty u/s 271D of the Act is set aside – Decided in favour of Assessee.
|