Case Law Details
Sri Jagmohan Sharma Vs. JCIT (ITAT Kolkata)
The transactions between these family members are neither loans nor deposit and purely a family system and purely a family requirement to help each other in the needy hours, for example medical help, education help and expenses to run the family. That is, one member of the family helps to other member in the needy hours, such as during medical treatment, education, marriage or some other family needs. Therefore, respectfully following the judgment of the Coordinate Bench, we are of the view that transaction between Sister-in-law and Nephew (family members) did not fall in the definition of loan. Therefore, penalty for accepting loan and repaying loan u/s 271D and 271E should not be levied. Therefore, we quash the penalty u/s 271D and 271E for the A.Y 2005-06 in ITA No. 552/Kol/2015 and in ITA No.553/Kol/2015.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
The captioned two appeals filed by the assessee, pertaining to Assessment Year 2005-06, are directed against the orders passed by the CIT(A) in Appeal Nos. 81 & 82/CIT(A)/Asl/R-3/Asl/12-13, both dated 20.03.2015, which in turn arise out of penalty orders passed by the Assessing Officer under sections 271D and 271E of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’), both dated 28.06.2012.
2. Since, these two appeals relate to the same assessee, same Assessment Year and identical issues are involved, therefore, these have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity. The assessee’s appeal in ITA No. 552/Kol.2015, for A.Y. 2005-06, is taken as the lead case.
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