Section 269SS not applies to Loan transaction between husband & wife

Shri Sunil Kumar Sood Vs JCIT (ITAT Delhi)

Assessee had taken cash loan from his wife for purchase of two properties during the F.Y. 2007-08. He submitted that the provisions of section 269SS do not bar genuine cash transactions of loan but bar only those transactions which are entered with the intention to evade taxes. These provisions are made to counteract evasion of tax but not to bar cash transactions between close relations. He submitted that in the instant case, it is not a case where unaccounted cash was found in the course of search and seizure operations. The assessee was

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