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2021 (7) TMI 974 - AT - Income TaxLevying penalty u/s 271D - Accepting loan / deposits in cash from relatives - assessee failed to comply with the provisions of section 269SS - HELD THAT:- We notice that assessee has taken loan from her relatives in various dates in cash in order to meet her higher education expenses. We notice that all these loans were taken from close relatives for the purpose of higher education. As held in CIT versus Balaji Traders [2006 (12) TMI 126 - MADRAS HIGH COURT] that when there is an immediate need of money the person cannot get it immediately from a nationalized bank. To satisfy such immediate requirement of money a person normally approaches the moneylender or a friend or relative who could lend money immediately. In those circumstances it cannot be said that the assessee has entered into a transaction to avoid the payment of tax or to defraud the revenue. Even in this case, the assessee has taken loans from relatives to finance her higher education. We do not see any reason to impose a penalty in the circumstances of this case where the assessee has taken loan from her relatives without approaching any banking institution. Accordingly, the penalty imposed by the revenue authorities are deleted. Appeal filed by the assessee is allowed.
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