Manjinder Singh Grewal Vs Addl/ CIT (ITAT Chandigarh)
Cash Deposit by Father for Safekeeping Not a Loan or Deposit -ITAT Chandigarh Deletes ₹20 Lakh Penalty u/s 271D
Assessee appealed against the order of CIT(A), NFAC, Delhi confirming penalty u/s 271D of ₹20 lakh for violation of section 269SS. AO had observed that Assessee received ₹20 lakh in cash during F.Y. 2008-09 & deposited the same in his Kotak Mahindra Bank account on 10.05.2008. Treating this as acceptance of a cash loan or deposit exceeding ₹20,000, AO levied penalty u/s 271D, which CIT(A) upheld.
Assessee explained that his father, an agriculturist without a bank account, had received ₹20 lakh as earnest money from a purchaser of his agricultural land. For safety, he had temporarily deposited the amount into Assessee’s account, from where it was withdrawn & returned within five days. Hence, there was no loan or deposit, & section 269SS was not applicable.
Tribunal found the explanation reasonable & unrebutted by Revenue. It held that the transaction was a bona fide temporary parking of funds for safekeeping, not a loan or deposit attracting section 269SS. The levy of penalty u/s 271D was therefore unjustified.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
