2017 (8) TMI 1697 - AT - Income Tax
Penalty u/s 271(E) - violation of provisions of section 269SS & 269T - assessee submitted before the CIT (A) that transactions between husband and wife, and between father and son are not considered for the purpose of section 269SS and section 269T because they are not “other Person” as mentioned in section 269T - Assessee held transaction of loan which has a commercial identity cannot be transposed between a relation of husband and wife - HELD THAT:- We are of the view that the transaction between husband and wife does not fall in the definition of “any other person”, that is, the transaction between closely related person like husband and wife, father & son etc. They would fall outside the scope of section 269T of the Act. Therefore, in our opinion, a transaction of “loan” which has a commercial identity cannot be transposed between a relation of husband and wife. Therefore, considering the factual position, we are of the view that the penalty imposed by the Assessing Officer u/s. 271E and confirmed by the Ld. CIT(A) needs to be deleted. Accordingly, we delete the penalty. - Decided in favour of assessee.