Case Law Details
Sonia Malik Vs JCIT (ITAT Delhi)
It is an admitted fact that the transaction took place between the assessee and her parents and brother. Their credit worthiness is not in dispute. The Hon’ble Madras High Court in the case of CIT vs. M. Yeshodha (supra) has held that ‘the transaction of loan between father in law and daughter in law in cash cannot be subject matter of levy of penalty u/s 271D of the Act.
The Hon’ble Punjab & Haryana High Court in the case of CIT vs. Sunil Kumar Goel (supra) has held that ‘a family transaction, between two independent assessees, based on an act of casualness, specially in a case where the disclosure thereof was contained in the compilation of accounts, and which had no tax effect, established ‘reasonable cause’ under section 273 B of the Act’ and, therefore, the provisions of section 271D are not applicable.
The Hon’ble Rajasthan High Court in the case of CIT vs. Manoj Lalwani (supra) held that when the loan in cash has been taken in view of urgent need connected with export, Tribunal was justified in deleting the penalty u/s 271D of the IT Act.
The Delhi Bench of the Tribunal in the case of Sunil Kumar Sood vs. Jt. CIT (supra) held that where the assessee has taken loan from his wife for the purchase of house which is for the benefit of the whole family, penalty levied u/s 271D of the Act is not justified.
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