Priyadarshini Ulaveesh Kasetty Patel Vs ITO (ITAT Bangalore)
271D/271E Penalty – Cash from Uncle for Studies – Delay Condoned & Penalty Appeals Restored
Assessee was visited with penalties u/s 271D & 271E on the ground that she had accepted ₹2,00,000 in cash during AY 2015-16 & repaid the same in cash during AY 2021-22. The AO held that the transaction contravened the mandate of Sections 269SS & 269T & imposed penalty. The explanation of Assessee was that the cash was received from her paternal uncle to meet her educational needs & initial job expenses & was repaid when she found employment. It was submitted that such transactions with close relatives cannot be brought within the mischief of the penal provisions. AO, however, did not accept the plea & proceeded to levy penalty. The appeals filed before CIT(A) met with dismissal since Assessee did not respond to the notices issued through the ITBA portal.
The matter travelled to the Tribunal with a delay of 98 days. A petition for condonation of delay was filed wherein Assessee explained that she had no knowledge of the portal procedure for viewing orders & also faced delay in engaging a counsel. After examining the explanation, Tribunal found that the reasons were bona fide & therefore condoned the delay.
