No penalty on cash loan from Parents and Brother for buying House for Family

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 ...