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2019 (9) TMI 1035 - AT - Income TaxPenalty u/s 271D - assessee has accepted cash from his father - contravention of the provisions of section 269SS - HELD THAT:- The first transaction pertaining to cash received by the assessee from his father we are satisfied with the explanation of the assessee that the assessee gave this amount to his father after withdrawing the same from his bank account towards purchase of land and due to cancellation of land deal, it was returned to the assessee by his father and same was deposited by the assessee to his bank account. As the land deal was under process and for acquisition of land and the intention of the assessee was to contribute and support his family. Therefore, on cancellation of land deal, the amount was returned to the assessee and such transaction cannot be tagged as loan or advance in contravention of section 69SS of the Act. Hence, penalty u/s.271D cannot be imposed on this count. Four transactions of receiving cash from relatives and family members by the assessee under medical emergency, then we are inclined to hold that this is a simply transaction of transfer of money from one family members to another family members to support him during medical emergency period and such transaction cannot be treated as loan or advance and transaction falling under the ambit of section 269SS of the Act attracting penalty u/s.271D - transaction between the relatives of family members for giving support and help, is not loan or deposit and it is only a financial support. Penalty imposed by the AO and confirmed by the CIT(A) on account of cash amount received from the members of AOP - there are four members of AOP including the assessee Shri Gourang Chandra Nayak and Shri Sasanka Sekhar Sahu alongwith Shri Manoj Kumar Biwal, wherein, it was agreed between the members of AOP that the contributory amount will be kept with the assessee until a bank account is opened in the name of school. Therefore, the said amount cannot be alleged as transaction of loan or deposit in contravention of section 269SS of the Act. In this situation, the assessee is only a trustee of money till bank account in the name of school is opened and thus, such transaction cannot be named as transactions as loan or advance in cash which attracts penalty u/s 271D Amount received by the assessee on seven transactions is genuine and not loan or advance in contravention of section 269SS - Decided in favour of assessee.
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