TMI Blog2021 (7) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... ally approaches the moneylender or a friend or relative who could lend money immediately. In those circumstances it cannot be said that the assessee has entered into a transaction to avoid the payment of tax or to defraud the revenue. Even in this case, the assessee has taken loans from relatives to finance her higher education. We do not see any reason to impose a penalty in the circumstances of this case where the assessee has taken loan from her relatives without approaching any banking institution. Accordingly, the penalty imposed by the revenue authorities are deleted. Appeal filed by the assessee is allowed. - ITA No. 4016/MUM/2019 (Assessment Year: 2014-15) - - - Dated:- 2-6-2021 - SHRI MAHAVIR SINGH (VICE PRESIDENT) AND SHRI S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... free loan the same has been given out of my love and affection towards her and to assist her for completing her postgraduation course. Loan amount was given in cash. Padmanabha Parnisappa Ijari ₹ 1,00,000/- I assisted my granddaughter for her medical studies in Cash. I gifted her Rs. One Lakh. Prajakta Khot ₹ 1,00,000/- The same is interest free loan given to her out of my love and affection to enable her to complete her higher education. Based on the above observation, AO initiated the proceedings under section 269SS against the assessee for accepting loans/specified some of ₹ 6,50,000 in cash. Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation letters from all the above parties and filed the same before us. On the other hand, the Ld. AR relied on orders passed by lower authorities. 4. Considered the rival submissions and material on record. We notice that assessee has taken loan from her relatives in various dates in cash in order to meet her higher education expenses. We notice that all these loans were taken from close relatives for the purpose of higher education. As held by the Hon ble Madras High Court in CIT versus Balaji Traders that when there is an immediate need of money the person cannot get it immediately from a nationalized bank. To satisfy such immediate requirement of money a person normally approaches the moneylender or a friend or relative who could len ..... X X X X Extracts X X X X X X X X Extracts X X X X
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