2017 (3) TMI 44

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....when the genuineness of the transaction is not in dispute is the question that falls for consideration in this appeal. It is not in dispute that the assessee is the wife of Shri S. S. Jain, who is a Doctor by profession. In the individual bank account of Shri S. S. Jain with the Central Bank of India, he had deposited a cheque for Rs. 2,05,000/on 02.01.1995. The cheque was received by Shri S. S. Jain on account of sale of the house property. On the same date, Shri S. S. Jain, withdrew a sum of Rs. 1,50,000/from the said bank account and credited the same in his account and gave the amount of Rs. 1,50,000/to the assessee out of the said amount in cash on 03.01.1995. The assessing officer held that as the assessee had accepted the amount o....

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....band paying the amount of Rs. 1,50,000/to the wife by withdrawing the same from his bank account may not be routed only through the bank account by cheque or demand draft. It is submitted by referring to the judgment of the Jharkhand High Court reported in (2008) 217 CTR 144 , that in case of a genuine transaction, the imposition of penalty would not be warranted if the technical mistake committed by the assessee has not resulted in the loss of revenue. The learned counsel then relied on the judgment of the Hon'ble Supreme Court reported in 83 ITR 26 that an order imposing penalty for carrying out a statutory obligation would not be passed unless the party, either acted deliberately in defiance of law or in conscious disregard of its ob....

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....cash. The genuineness of the amount involved is not in dispute. There is no loss to the Revenue. The assessee has further claimed that she was under a bona fide belief that she could have accepted the amount of Rs. 1,50,000/from her husband in cash and it was not obligatory for her to route the transaction only by an account payee cheque or an account payee bank draft. The explanation of the assessee was accepted by the Commissioner of Income Tax and the tribunal without considering the claim of the assessee that the the assessee was under the bona fide belief that the transaction need not have been routed only through the Bank vide cheque or a draft, reversed the order of the Commissioner of Income Tax to uphold the order imposing the pena....