| The Tax Publishers2020 TaxPub(DT) 0524 (Bang-Trib) INCOME TAX ACT, 1961
Section 271E
When the loan transactions were entered between close-relatives, no penalty could be levied under section 271E because in that case loan transactions were considered to constitute reasonable cause in terms of section 273B.
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Penalty under section 271E - Contravention of section 269T - Loan transaction entered between close relatives - Reasonable cause
Assessee had received gift from her husband (in individual status and HUF status) by way of cash. Thereafter, she had given gift to her husband by way of cash. Further, as the gift amount received and repaid was the same, the Revenue had considered those transactions as loan transactions. Accordingly, penalty under section 271D or 271E was levied by AO, but CIT(A) deleted the penalty levied under section 271D. Assessee contended that, even if said transactions were considered as loan transactions, the penalty under section 271E was not leviable as the loan transactions entered between close relatives were considered to be fall under reasonable cause. Held: Penalty under section 271E could not be levied, even though repayment of loan amount was done in cash, when the loan transactions were entered between close relatives because said loan transactions were considered to constitute reasonable cause in terms of section 273B.
Relied:CIT v. M. Yesodha (2013) 351 ITR 265(Mad) : 2013 TaxPub(DT) 1302 (Mad-HC).
REFERRED : CIT v. Sunil Kumar Goel (2009) 315 ITR 163 (P&H) : (2009) 183 Taxman 53 (P&H) : 2009 TaxPub(DT) 1514 (P&H-HC), Deepika v. Addl. CIT ITA No.561/Bang/2017 dated 13-10-2017, ACIT v. Vardaan Fashion (2015) 60 Taxmann.com 407 (Delhi-Trib.) : 2015 TaxPub(DT) 0744 (Del-Trib), ITO v. Tarlochan Singh (2003) 128 Taxman 20 (Mag) : 2003 TaxPub(DT) 0840 (Asr-Trib) and Dr. B.G. Panda v. DCIT [IT Appeal No. 2742 (Cal.) Of 1993, dt. 10-3-1998]
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, BANGALORE BENCH
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