Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (1) TMI 1533 - AT - Income TaxPenalty u/s 271D and 271E - transactions between family relatives - whether not covered by the provisions of section 269SS and 269T? - addition U/s 69A - HELD THAT:- Coordinate Bench of the Kolkata Tribunal in the case of Sri Mansur Ali Laskar 2011 (12) TMI 732 - ITAT KOLKATA for A.Y 2007-08 dated 30.12.2011 (supra) wherein the Bench has considered, Niece, Uncle, Aunty, Wife of brother, Wife`s Sister and Counsin sister as a part of family members. In the assessee`s case under consideration the transaction with sister-in- law and Nephew should also be considered as a part of family members. There is no difference between Wife`s sister and Sister-in law and if Niece is part of family member then Nephew should also be part of family member. The definition of relatives include husband, wife, brother, sister, sister-in law, Niece and Nephew etc. as per the list given in para 6 of this judgment. The transactions between these family members are neither loans nor deposit and purely a family system and purely a family requirement to help each other in the needy hours, for example medical help, education help and expenses to run the family. That is, one member of the family helps to other member in the needy hours, such as during medical treatment, education, marriage or some other family needs. Therefore, respectfully following the judgment of the Coordinate Bench, we are of the view that transaction between Sister-in -law and Nephew(family members) did not fall in the definition of loan. Therefore, penalty for accepting loan and repaying loan u/s 271D and 271E should not be levied.- Decided in favour of assessee.
|