2013 TaxPub(DT) 1302 (Mad-HC) : (2014) 055 (I) ITCL 0391 : (2013) 351 ITR 0265

CIT v. M. Yesodha

INCOME TAX ACT, 1961

--Penalty under section 271D--Contravention of section 269ssReasonable cause--AO had initiated penalty proceedings under section 271D as the assessee had obtained a loan in cash from her father-in-law, which was in contravention of the provision of section 269ss. assessee claimed that the amount received in cash from her father-in-law was a gift and not a loan. AO however contended the amount received as a loan because the same was shown as a loan in the balance sheet of assessee which was filed along with the return of income hence penalty was reightly leived Held :Not rightly so as it had rightly found that the transaction between the daughter-in-law and father-in-law was a reasonable transaction and a genuine one owing to the urgent necessity of money to be paid to the seller. therefore, this would amount to reasonable cause shown by the assessee to avoid penalty under section 27 ID