TaxTMI 
TaxTMI 
2011 (10) TMI 776
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....inst the order of CIT(A) confirming the levy of penalty at Rs.4 lakhs u/s. 271D of the Act for violation of provisions of section 269SS of the Act. 3. The brief facts are that assessee received advance of Rs. 5 lakhs from Smt. Jayanti Ghosh as under:- Date Mode of payment Amount 13.12.2002 By Cash source being cash withdrawn by Smt. Jayanti Ghosh Rs.3,00,000 06.01.2003 Amount was paid to one Sri Manas Das through Bearer cheque no.74181 as directed by the assessee to clear his business dues. Rs.1,00,000 07.02.2003 Through bearer cheque no.74182 issued in Rs.1,00,000 Favour of Shri Madhu Ghosh, the assessee Rs.5,00,000 The AO during the course of assessment proceedings noted that assessee has received this sum in cash of Rs.5,....
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....Madras High Court in the case of Cit Vs. Idhayam Publications Ltd. (2006) 285 ITR 221 (Mad.) as held that the transactions between relatives cannot be termed as loan or deposit particularly when no interest is being charged on the transactions. In the present case also the assessee has not paid any interest to Smt. Jayanti Ghosh and it is also a fact that she is related to assessee. Hon'ble Gujarat High Court in the case of Natvarlal Purshottamdas Parekh (supra) has confirmed the findings of Tribunal as under: "18. As discussed above, the annexure attached to the penalty order goes to show that each of the family members of the assessee and each one of them was having sufficient opening balance as on April 1, 1990. After that we have to l....
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....ehalf of his family members in PPF Rs. 25,523 has been paid towards LIC premium. The amounts of advance tax, income-tax as well as wealth-tax will be around Rs. 80,000 and again gift from one family member to other family member comes to Rs. 1.09 lakhs and Rs. 16,000 is again journal entry for allocation of share for household expenses. This again shows that no amount was paid by the assessee in cash to any of the family member. These facts as mentioned above, have not been challenged by the Revenue as genuineness of these transactions, viz., receipts of amount of NSCs, book entries relating to gift from one family member to other and credit entries in respect of salary and bonus and rent etc., the genuineness of investment in PPF, LIC prem....
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.... reproduced hereinbefore the Tribunal has appreciated the evidence on record and arrived at certain findings based on such appreciation of evidence. The position in law is well-settled that whether evidence is correctly appreciated or not cannot give rise to a question of law unless and until such findings are challenged as being contrary to the evidence on record or recorded after omitting to consider relevant evidence and taking into consideration irrelevant evidence. In the present case, that is not the position and in fact that is not even alleged. Furthermore, the Tribunal has also found that the assessee had been able to establish existence of a reasonable cause, even if the finding of the Tribunal that there was no violation is not a....