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2020 (7) TMI 392 - AT - Income TaxPenalty u/s. 271D - violation of section 269SS - father using the money of his son - HELD THAT:- The explanation of the assessee was that his son who earns income from truck plying has given the money for safe keeping with him and when there was an urgent necessity to pay the creditors to run his proprietorship business, the assessee had used this money and reflected it as loan from his son. A father using the money of his son cannot be termed as loan given by the son to the father/assessee. When the father needs money or son needs money, the money given between the family members cannot be termed as loan or advances even though for purpose of accounting it is shown as loan. It is a settled law that the nomenclature in the account books cannot determine the nature of transaction. Since the Ld. JCIT has noted from the ledger account of the son Shri Saurabh Agarwal that the money has been given by the son to the father and that have been used by the father for tiding over urgent business requirement cannot be termed as loan/advance, so it cannot attract the penalty u/s. 271D of the Act, therefore, we direct deletion of the penalty as imposed by the Ld. JCIT and confirmed by the Ld. CIT(A). Therefore, appeal of assessee is allowed.
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