TMI Blog2018 (1) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... hese transactions do not fall within the ambit of sections 269SS and 269T of the Act. To support the family members, the money has been given by the assessee to his son/wife. This is simply a transfer of money from one family member to another family member to support day to day expenses, educational expenses and other family expenses. We are of the view that the transaction between son and father and wife and husband, for giving a support and help, in law, is not a loan or deposit in stricter sense of section 269SS of the Act and it is only a financial support, therefore, penalty imposed by the Assessing Officer and confirmed by the ld CIT(A) needs to be deleted under section 269SS and 269T - Decided in favour of assessee. - ITA No. 45 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucumstances of the case, the ld. CIT(A) ought to have considered that the transactions were between close relatives and were not in the nature of loan or deposit, and thus, the provision of sec 271D was not applicable. 4. For that the ld. CIT(A) ought to have considered that bona fide belief of the assessee that transactions between close relatives falls outside the ambit of section 269SS of the Act is a reasonable cause falling u/s 273B of the Act. 5. That the appellant craves leave to add, alter or delete all or any of the grounds of appeal. 4. The brief facts qua the issue are that in the assessee`s case under consideration, the assessment u/s 143(3) of the I.T Act was completed by the AO on 31.12.2012 at a total income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61. During the penalty proceedings, the assessee replied to the Assessing Officer that these loan transactions were mainly between son and father, wife and husband. The assessee submitted that the transactions between son and father and husband and wife are for mainly giving support and help to the family members. The assessee also submitted that the interest payment to the relatives is also not in the character of loan or deposit. Therefore, penalty under sections 271D and 271E do not attract. However, the Assessing Officer had rejected the contentions of the assessee and held that these were the transactions between son and father, husband and wife, therefore, assessee had contravened the provisions of section 269SS and 269T of the I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case under consideration the assessee is salaried employee and does not do any business therefore the transactions between him and his son/wife are not commercial/business transactions therefore the provisions of sections 269SS and 269T do not apply.They are relatives and transfer of money between them for family need is not a commercial transaction. Therefore, penalty undersections 269SS and 269T will not be applicable in respect of accepting money by the relatives and payment of money by the relatives.The ld. Counsel for the assessee has relied on the judgment of Hon`ble ITAT Kolkata in ITA Nos.331 332/Kol/2010 in the case of Anant Himatsingka Vs. ACIT, dated 25.11.2011 wherein it was held that the transaction between son-in law and fat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all within the ambit of sections 269SS and 269T of the Act and for that we rely of the judgment of coordinate Bench in the case of Anant Himatsingka and Manisha Prakash Amin (supra).To support the family members, the money has been given by the assessee to his son/wife. This is simply a transfer of money from one family member to another family member to support day to day expenses, educational expenses and other family expenses. Going through the facts of case before us, we are of the view that the transaction between son and father and wife and husband, for giving a support and help, in law,is not a loan or deposit in stricter sense of section 269SS of the Act and it is only a financial support, therefore, penalty imposed by the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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