AI Drafter 
TaxTMI 
TaxTMI 
2016 (6) TMI 1051
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.... 2. While admitting the matter on 28.11.2007, the following substantial question of law was framed by the Court for consideration :- "Whether on the facts and in the circumstances of the case, Income Tax Appellate Tribunal was right in law in confirming the penalty u/s. 271D of the Income Tax Act, 1961 even though the transaction of accepting Rs. 2 lacs from appellant's son was non-commercial and personal in nature, apart from otherwise found to be genuine?" 3. The facts of the case are that the appellant an individual has income from medical practice and agriculture. The appellant had filed his return of income for Assessment Year : 2003 - 2004 on 31.03.2004. During the course of assessment proceedings, the Assessing Officer noti....
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....rsonal use and thus, it was neither a loan nor deposit nor had anything to do with evasion of tax. Against this order, the respondent came in an appeal before the Appellate Tribunal wherein the penalty was confirmed. Being aggrieved by this order, the above Appeal is preferred. 4. Learned Advocate for the appellant has taken this Court to the facts of the case and has referred to Paragraph 6 of the judgment and order of the CIT (Appeals) which reads as under :- "I have carefully considered the submission made by the appellant alongwith the case record and the material brought to my notice. I have also considered the various judicial authorities the appellant has sought support from. The undisputed fats which has emerged from the recor....
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....hat it was claimed by him that the amount received was neither loan nor deposit to attract the penalty. It is accepted fact that the son of the appellant gave the amount to his father to deposit the same in his bank account so that vehicle for personal use could be purchased by father. There is no material or record to suggest that there were any terms between the parties as to the payment of interest or the time of repayment. There is nothing to suggest that it was obligatory upon the father appellant to repay the amount to his son. In absence of such material it cannot be said that the amount received by the appellant was 'loan' or 'deposit' so as to attract provisions of Section 269SS or 271D clarify consideration of the ....
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.... Electricals Ltd. (supra), paragraphs 6, 7, 8 and 9 reads as follows :- "6. The object of introduction of s. 269SS of the Act has been stated by the Apex court in the aforesaid case of Asstt. Director of Inspector v. Kum A.B. Shanthi (supra) in the following terms : "The object of introducing s. 269SS is to ensure that a taxpayer is not allowed to give false explanation for his unaccounted money, or if he has given some false entries in his accounts, he shall not escape by giving false explanation for the same. During search and seizures, unaccounted money is unearthed and the taxpayer would usually give the explanation that he had borrowed or received deposits from his relatives or friends and it is easy for the so-called lende....
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.... is a reasonable cause, as found by the Tribunal, but in light of the finding of the Tribunal that the breach, if any, is merely a technical or venial breach no penalty is leviable as laid down by the apex Court merely because it is lawful to do so without exercising discretion before imposing the penalty. 9. In the result, the question referred is answered in the affirmative i.e. in favour the assessee and against the Revenue." In the case of Commissioner of Income Tax v. Balaji Traders (supra), paragraphs 7 and 8 reads as follows :- "7. In the instant case, the CIT(A) and the Tribunal found that (i) there was business exigency forcing the assessee to take cash loans for the purpose of honouring the commitment, viz. issuance of ch....