TMI Blog2021 (4) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... T. M. YESODHA [ 2013 (2) TMI 211 - MADRAS HIGH COURT] we delete the penalty and allow the appeal of the assessee. - ITA No. 4251/Mum/2019 - - - Dated:- 17-3-2021 - Sri Mahavir Singh, VP And Sri S Rifaur Rahman, AM For the Appellant : None For the Respondent : Shri Vidhyadhar V, DR ORDER PER MAHAVIR SINGH, VP: This appeal of assessee is arising out of the order of the Commissioner of Income Tax (Appeals)]-55, Mumbai, [in short CIT(A)], in ITA No. CIT(A)-55/JCIT-20(3)/IT-47/19-20 dated 15.05.2019. The assessment was framed for the A.Y. 2013-14 vide order dated 29.03.2016 under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act ). The penalty was levied by the Jt. Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Sr. DR and gone through the facts and circumstances of the case. Briefly stated facts are that the Assessing Officer during the course of assessment proceedings noticed that the assessee has received, a sum of ₹ 3 lacs in cash from his mother Mrs. Krishna Agarwal, in violation of the provision of Section 269SS of the Act. Hence, the Assessing Officer initiated the penalty proceedings. During the course of penalty proceedings, the JCIT-Range- 20(3), Mumbai levied the penalty despite the assessee s explanation vide letter dated 16.05.2016 which read as under:- The impugned notice propose to levy penalty u/s 271D in respect of loan given to Mrs. Krishna Agarwal for ₹ 3,00,000/-. In this connection we draw your kind atten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, temporary advanced were given by mother to his son for safe custody, so provision of Sec. 269SS were not applicable to these transactions. The assessee relied on the judgment of Hon ble ITAT in the case of Smt Naina D Parikh vs. ITO-24(3). 5. The CIT(A) also confirmed the action of the Assessing Officer in levying penalty under section 271D of the Act for violation of provision of Section 269SS in accepting cash of ₹ 3 lacs from mother as a loan. Aggrieved, now assessee is in appeal before Tribunal. 6. We noted that the assessee has received cash loan from mother of the assessee namely Mrs. Krishna Agarwal. It was claimed by the assessee that this is a temporary advances by the mother to her son as per her own finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te the plea that her father-in-law had advanced the amount as cash gift, the assessee's father-in-law had filed an affidavit before the Commissioner of Income Tax (Appeals). Regarding the affidavit, remand report was called for from the Assessing Officer. In the remand report, the Assessing Officer has doubted the nature of transaction. In our considered view, in the light of the relationship between the assessee and her father-in-law, the Tribunal has rightly held that the genuineness of the transaction is not disputed, in which, the amount has been paid by the father-in-law for purchase of property and the source had also been disclosed during the assessment proceedings. If there was a genuine and bonafide transaction and the tax paye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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