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2018 (11) TMI 1490 - AT - Income TaxAddition u/s 68 - Unsecured cash credit - Held that:- Amount was transferred by the assessee through banking channel only. The account ledger of the Axis Bank of M/s Paramount Trading Co. was also filed by the assessee before the CIT(A) to explain that the amount was transferred out of the explained sources of the assessee. There is no incidence of pre-cash deposit before transfer, neither any such incidence was discussed by the CIT(A). The provisions of section 68 are applicable in case where the credit was received by the assessee. However, in the present case, the position is entirely different, as the amount of ₹ 58 lacs was not received by the assessee rather the amount was paid by the assessee to his wife out of his explained sources. Hence, the addition in dispute made in the hands of the assessee should not be taxed and therefore, the same is hereby deleted and accordingly, the appeal of the assessee stands allowed. Penalty made u/s 271D - loan transaction between husband and wife - Held that:- Assessee received advance money of ₹ 22 lacs from the four parties for the property no. 3498, Gali Sangrasha, Bara Hindu Rao, Delhi – 6. Due to some reasons, the deal was not materialized and the purchaser parties agreed to take another property which is in the name of assessee’s wife. The said amount was transferred to his wife’s account i.e., Mrs. Shahina Qureshi. Further note that there is no denial on the part of the AO that the amount of ₹ 22 lacs was received by the assessee from his wife, Mrs. Shahina Qureshi. However, while levying the penalty u/s. 271D AO did not appreciate the fact that the provisions of section 269SS are not applicable on the loan transaction between husband and wife. Thus, the question of levying of penalty u/s. 271D does not arise on the impugned transaction, hence, delete the penalty in dispute and allow the appeal of the assessee. - Decided in favour of assessee.
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