TMI Blog2020 (4) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... reversed. Further, there is nothing on record to suggest that the transaction is not genuine and bona fide. In this situation, the decisions relied by AR supports the case of the assessee. In the case of ITO vs. Trilokchand [ 2002 (12) TMI 195 - ITAT AMRITSAR] it has been categorically held that when the assessee recieves cash loan from his wife for acquiring immovable property it will not result in commercial transaction and there is no breach of provisions of section 269SS of the Act and accordingly penal provisions under section 271D of the Act cannot be invoked. There existed reasonable cause for the assessee for accepting cash loans from his own brother-in-law and since there is nothing to suggest that the transaction is a commerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iced that the assessee had accepted cash loan from Sri P. Shashikanth, S/o Sri P. Suryanarayana during the FY relevant to the AY 2008-09 as detailed hereinbelow:- Sl.No. Date Amount of loan (Rs.) 1 04/05/2007 75,000/- 2 08/05/2007 65,000/- 3 31/05/2007 70,000/- 4 05/07/2007 65,000/- 5 27/07/2007 1,50,000/- 6 25/09/2007 65,000/- 7 09/01/2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;s explanation, the assessee had affirmed the acceptance of cash loan by way of cash deposits in his bank account by Sri P Shashikanth. The Ld.AO further opined that the assessee did not bring out a case where there is a reasonable cause for accepting the loan amount in cash. The Ld.AO therefore, levied penalty of ₹ 6,00,000/- u/s 271D for contravention of Section269SS of the Act which is equal to the amount of loan taken by the assessee. 7. Aggrieved by the order of AO, the assessee preferred an appeal before the CIT(A). 8. Before the CIT(A), the assessee submitted that he has obtained cash from his brother-in-law Sri P. Shashikanth for the purchase of an immovable property at Kavadiguda for a consideration of ₹ 20,00, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er hand relied on the orders of the Ld. Revenue Authorities and vehemently argued in support of the same. 11. We have heard the rival submissions and carefully perused the mterials on record. It is not in dispute tht the assessee has obtained the cash from his own brother-in-law. It is also not in dispute that the assessee obtained the cash loan for the purpose of acquiring immovable property wherein he was constrained to resciend the agreement in the event the balance purchase consideration is not paid within the stipulated time and in such event the transaction has to be reversed. Further, there is nothing on record to suggest that the transaction is not genuine and bona fide. In this situation, the decisions relied by the Ld. AR suppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was reflected in the books of accounts on account of the Samajwadi Party as well as in the books of account of the assessee and that the cash given by the party was deposited in the bank of the assessee and, thereafter, used for the purpose of converting the nazul land into free hold. The Tribunal found that the genuineness of the transaction was also not disputed by the Assessing Officer. 16. In the light of the aforesaid, we find that even though the assessee had taken a loan in cash, nonetheless, the loan transaction was a genuine transaction and was routed through the bank account of the assessee which clearly shows the bona fides of the assessee. The cash given by the lender was not unaccounted money but was duly reflected in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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