TMI Blog2009 (12) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... case leading to levy of penalty u/s 271D as considered by Ld. CIT (A) are as under :- 3. The facts as gathered from the record are as follows :- The assessee filed his return of income declaring a total income of ₹ 1,41,940/- along with the agricultural income of ₹ 25,000/- on 23.3.2005. Later on the case was selected for scrutiny and the assessment was completed u/s 143(3) of the Income Tax Act on 26.12.2006 on a total income of ₹ 3,91,950/-along with the agricultural income of ₹ 25,000/- During the year under consideration the appellant had purchased the agriculture land for consideration of ₹ 14,40,000/- on 31.7.2003 from Shri Mauji Ram S/o Balvant Singh R/o Vill. Khora Pargana Loni, Gha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Uncle, aged 80years During the course of assessment proceedings, the assessing officer noticed that the appellant had taken the aforesaid cash loans. Accordingly, the competent authority, AO for such violation of section 269SS of I.Tax Act 1961 had issued a show cause notice u/s 271D of the I.Tax Act on 12.02.2007 to provide an opportunity of being heard. In response to that, the assessee counsel filed the written explanation and submissions and further after considering it, the Additional CIT, Range-1, Meerut imposed a penalty u/s 271D of the I.Tax Act at ₹ 4,50,000/- vide his order dated 19.7.2007. 4. Before Ld. CIT (A) it was submitted as under :- (1) That as regards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- was from her agricultural earnings. Her status as an agriculturist has been established before the learned assesssign officer. (4) That there was no mensrea either to violate the provisions of the Act or to evade the tax. All the loans has been taken under bona fide belief so in the absence of malafide intention no penalty can be imposed. (5) That the appellant has utlised the entire amount for the purchase of agricultural land where it is not possible to make the bank transaction as per the sweet will of the seller. 5. Ld. CIT (A) held that object of provision of section 269SS being unaccounted money . It is not applicable to any transaction which is a genuine one and in which no unaccounted money is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... branded as loan or advances but by way of assistance or need. Under the Indian tradition of joint family, if a person receives amount from his own mother or wife cannot be said to have taken or accepted any loan which he may or may not repay. The amount is received rather by way of giving assistance to the person and cannot be attracted strictly as loan or advance repayable on demand. The assessee was in urgent need of money for payment of purchase consideration for agricultural land. The assessee as well as his mother, wife and uncle are basically an agriculturists and though having bank account , on the moment it was not feasible to put the money in bank account, then to obtain cheques and then again after clearing such cheques to withdr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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