TMI Blog2011 (6) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... d in upholding that the assessee appellant is not an agriculturist as he is partner in the firm M/s. Ree Filling Station and drawn salary from the said firm, therefore, violated the provisions of section 269SS without appreciating that the assessee appellant has joined the partnership firm on 26.08.2004 whereas the loans have been taken on 20.08.2004. 2. That on the facts circumstances of the case and in law, the ld. CIT(A) erred in upholding that the assessee appellant is a partner in the firm and drawn salary from the said firm whereas per explanation filed no income has accrued or received by the assessee appellant till the date of accepting loans, therefore, having only agriculture income and, as such, has not violated the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the ITAT, Delhi Bench in the case of Ashwani Kumar Vs. ITO, 309 ITR (AT) 69, wherein it has been held as under: Penalty under s. 271D Contravention of s. 269SS-Persons having agricultural income only Assessees taking loan from their grandfather, all having agricultural income and neither of them having any income chargeable to income-tax as on the date of transaction, penalty u/s 271D would not be attracted by application of second proviso to s. 269SS Sec. 269SS being transaction specific, it is immaterial that assessees subsequently earned taxable income If no tax is payable by a persons, he cannot be treated as an assessee so as to subject him to the rigours of ss. 269SS and 271D. ii) Decision of ITAT, Amritsar Bench, in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tainable. 5. The Ld. DR , on the other hand relied on the orders of the authorities below. 6. We have carefully perused the relevant facts of the case, rival submissions and the relevant provisions section 260SS of the Act, including the case laws cited by the Ld. Counsel for the assessee. It is evident that the assessee became partner in the firm on 26.08.2004. The loans which were considered by the lower authorities , in the light of provisions of section 269SS read with section 271D of the Act, were prior to the date of becoming a partner of the assessee-firm. Both the lender and borrower, as contended by the Ld. Counsel for the assessee, are agriculturists and did not have any income chargeable to tax. This factum could not be r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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