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2017 (10) TMI 1405 - AT - Income TaxPenalty u/s 271D - loan accepted in cash in violation of the provisions of Section 269SS - loans in question had been taken by the Assessee from her mother, from the HUF in which she was a member and Karta of the HUF in his individual capacity - Held that:- The daughter and member of the HUF have given money for certain specific purpose. The source and genuineness of the loan has been accepted by the AO. The cash loans in question therefore cannot be said fall within the mischief of Sec.269SS of the Act as near relatives cannot be said to be “Other person” within the meaning of Sec.269SS of the Act. In any event in the circumstances of the case, there was reasonable cause for accepting loans in cash. In the case of M.Yeshodha (2013 (2) TMI 211 - MADRAS HIGH COURT) held that transaction of loan between father in law and daughter in law in cash cannot be subject matter of levy of penalty u/s.271D of the Act. Thus we are of the view that imposition of penalty u/s.271D of the Act cannot be sustained. - decided in favour of assessee
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