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2023 (11) TMI 116 - ITAT RAIPURPenalty u/s. 271D - assessee had raised a cash loan from his nephew for making an investment towards purchase of property - AO treated it as undisclosed investment and rejected the claim of the assessee that the investment made by him towards purchase of properties was sourced out of the cash loan as raised from his relative - HELD THAT:- Once the A.O had rejected the claim of the assessee, there was no justification for the department to infer that the assessee had raised any such cash loan from the aforementioned person. Once the AO had concluded that no part of investment in the properties was sourced out any cash loan, but in fact it was the latters undisclosed income that was so utilized for sourcing the same, then, it is beyond comprehension that after having rejected the aforesaid explanation of the assessee how the department could have adopted a view to the contrary and saddled the assessee with penalty u/s 271D. Once the source of money invested by the assessee has been given the color as that of unexplained income and accordingly brought to tax by the AO, thereafter the department could not have taken a contrary view and held that part of the said investment was sourced out of a cash loan raised by the assessee. Decided in favour of assessee.
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