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2019 (12) TMI 975 - AT - Income TaxPenalty u/s.271D - contravention of provision of section 269SS - Accepting Loan / Deposits in cash - transactions with the close relatives - reasonable cause in accepting the loans within the meaning of section 273B - HELD THAT:- Provision of section 269SS was brought under the statue to discourage the assessee to justify their unaccounted money. However, in the case on hand, there is no allegation that the assessee has introduced unaccounted money in his business. Thus, keeping in view the object of the provision of section 269SS of the Act the cash transaction which is genuine cannot be brought under the net of tax under the provision of section 269SS of the Act. We also note that such transactions between the relatives and sister concern are not subject to the provisions of section 269SS of the Act in view of the order of Bangalore Bench of ITAT in the case of G.D. Subraya Sheregar vs. Income-tax Officer, Ward 2, Udupi [2006 (4) TMI 356 - ITAT BANGALORE] where the issue was decided in favor of the assessee. Genuineness of the cash transaction has not been doubted. Therefore, the penalty levied u/s 271D of the Act is not sustainable. - Decided in favour of assessee.
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