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2021 (7) TMI 510 - AT - Income TaxPenalty u/s 271AA - failure to keep and maintain information as required u/s 92D and not furnishing the report u/s 92E of the Act in relation to the assessment year 2013-14 - crux of the AO's point of view is that the assessee paid to the persons referred to in section 40A(2)(b) as per her own admission in the tax audit report and thus breached the mandate of sections 92D/92E - HELD THAT:- The first transaction of purchases was with Yogita Yogesh Mahajan, who is assessee‘s husband‘s brother‘s wife. She is neither the husband nor wife or brother or sister or any lineal ascendant or descendant of the assessee and hence not covered within the definition of ‘relative‘ as given in section 2(41). The second transaction of purchases is with Prabhavati Mahajan, proprietor Soni Adat Dukan, who is mother-in-law of the assessee. She is also not covered under section 2(41). The third transaction is payment of rent to Yogesh Pandurang Mahajan, who is assessee‘s husband‘s brother. He too does not fall within the definition of ‘relative‘ as given in section 2(41). The last transaction is payment of rent to Sunil Pandurang Mahajan, who is the assessee‘s husband. This transaction is covered within the meaning of term ‘relative’ as given in section 2(41) and hence falls within the realm of section 40A(2)(b). As noticed above the definition of specified domestic transaction as given in section 92BA as embracing, inter alia, the transactions referred to in section 40A(2)(b) of the Act provided ‘the aggregate of such transactions entered into by the assessee in the previous year exceeds a sum of five crore rupees.’ As the assessee‘s transaction covered u/s 40A(2)(b) is restricted only to ₹ 1.80 lakh, the same would not qualify as SDT u/s 92BA. A fortiori, sections 92D/92E also do not get magnetized and consequently, there can be no question of any penalty u/s 271AA. We, therefore, order to delete the penalty. - Decided in favour of assessee.
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