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2014 (3) TMI 1163 - AT - Income TaxPenalty u/s 271D - contravention of the provisions of section 269SS - cash found during the survey which was surrendered - cash loans on various dates exceeding ₹ 20,000/- from relatives - reasonable cause u/s 273B - HELD THAT:- We find that actually the assessee has not taken any loan from the sons but excess cash which was found during the survey has been surrendered in the names of two sons of the assessee. Later on, when entries were required to be made against the surrendered income then the same was shown as loans from two sons. In the case of CIT v Sunil Kumar Goel [2009 (3) TMI 131 - PUNJAB AND HARYANA HIGH COURT] wherein the assessee had accepted cash loans on various dates exceeding ₹ 20,000/- from relatives, penalty was held to be not imposable as held a family transaction, between two independent assessees, based on an act of casualness, specially in a case where the disclosure thereof was contained in the compilation of accounts, and which had no tax effect, established "reasonable cause" under section 273B. Also see SAINI MEDICAL STORE. [2005 (3) TMI 66 - PUNJAB AND HARYANA HIGH COURT]. Thus if the transactions are between relatives and without any malafide intention, then penalty is not leviable. In this case before us, it is merely a technical breach of law because assessee might not have taken any loan but to record the surrender income, the same has been shown in the names of the sons - Decided in favour of assessee.
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