2021 (7) TMI 974

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....y: Ms. Shreekala Pardeshi, DR ORDER PER S. RIFAUR RAHMAN, A.M. This is an appeal filed by the assessee. The relevant assessment year is 2014-15. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-36, Mumbai [in short 'CIT(A)'] and arises out of the penalty levied u/s 271(1)(c) of the Income Tax Act 1961, (the 'Act'). 2. The brief facts of the case are,....

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.... Bapusaheb Khot Rs. 2,50,000/- The loan is interest free loan & the same has been given out of my love and affection towards her and to assist her for completing her postgraduation course. Loan amount was given in cash. Padmanabha Parnisappa Ijari Rs. 1,00,000/- I assisted my granddaughter for her medical studies in Cash. I gifted her Rs. One Lakh. Prajakta Khot Rs. 1,00,000/-....

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....ervation that the loans are taken in cash, the provisions of section 269SS are attracted and as a consequence of penal provisions of section 271D are attracted. 3. Aggrieved with the above order, assessee preferred an appeal before us raising following ground of appeal : "The Joint Commissioner of Income Tax-24(3) has erred in levying penalty Rs. 5,50,000/- u/s 271D of the Income Tax A....

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....e notice that assessee has taken loan from her relatives in various dates in cash in order to meet her higher education expenses. We notice that all these loans were taken from close relatives for the purpose of higher education. As held by the Hon'ble Madras High Court in CIT versus Balaji Traders that when there is an immediate need of money the person cannot get it immediately from a nationaliz....