2026 (6) TMI 831

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....elates to penalty imposed under section 271E of the Act. Since the issues involved in both the appeals are interconnected, arise out of the same assessment year, and pertain to the same assessee, both appeals were heard together and are being disposed of by this consolidated order. 2. For the sake of convenience, we first take up ITA No. 596/Rjt/2026. The findings recorded therein shall apply mutatis mutandis to ITA No. 597/Rjt/2026. ITA No. 596/Rjt/2026 3. The brief facts of the case are that penalty proceedings under section 271D of the Act were initiated against the assessee on the allegation that the assessee had violated the provisions of section 269SS by accepting cash amounts exceeding Rs.20,000. During the course of penalty....

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....sactions and could not be treated as loans or deposits within the meaning of section 269SS. The Ld. AR further relied upon the judgment of the Hon'ble Gujarat High Court in the case of Dr. Rajaram L. Akhani vs. ITO [(2017) 395 ITR 497 (Guj.)], wherein it was held that transactions between close family members do not amount to loans or deposits so as to attract the provisions of sections 269SS and 269T and consequently no penalty under sections 271D and 271E is leviable. 6. On the other hand, the Ld. DR relied upon the orders of the authorities below. 7. We have heard the rival submissions and perused the material available on record. We find that the entire amount of Rs.10,08,000 was received from close family members and related enti....