MS PARINITA ANIL KHOT, Mumbai V. ITO 24(3)(3), Mumbai

ITA 4016/MUM/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2917 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 06-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift
• Section: 271D

Judgement Text

INTHEINCOMETAX APPELLATETRIBUNAL MUMBAI BENCHCMUMBAI BEFORE SHRI MAHAVIRSINGH(VICEPRESIDENT)ANDSHRI S. RIFAUR RAHMAN (ACCOUNTANT MEMBER) ITANO.4016/MUM/2019 ASSESSMENT YEAR:2014-15 MS. PARINITA ANIL KHOT, 31B-35, TAKSHILAAPARTMENT, MAHAKALIROAD, ANDHERI (EAST), MUMBAI-400093. VS. INCOMETAX OFFICER-24(3)(3), ROOMNO. 701, 7 TH FLOOR, PIRAMAL CHAMBERS, LALBAUGPAREL, MUMBAI-400012. PANNO. BQWPK 2380 N APPELLANT RESPONDENT ASSESSEEBY : MR. MANDARVAIDYA, AR REVENUEBY : MS. SHREEKALAPARDESHI, DR DATE OF HEARING : 22/03/2021 DATE OF PRONOUNCEMENT : 02/06/2021 ORDER PER S.RIFAUR RAHMAN, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEAR IS 2014-15.THEAPPEALISDIRECTEDAGAINSTTHEORDEROFTHECOMMISSIONEROFINCOME TAX(APPEALS)-36,MUMBAI[INSHORTCIT(A)]ANDARISESOUTOFTHEPENALTYLEVIED U/S271(1)(C)OF THE INCOME TAXACT 1961,(THE ACT). 2. THE BRIEF FACTS OF THE CASE ARE, ASSESSEE FILED E-RETURN OF INCOME ON 16.03.2016 FOR ASSESSMENT YEAR 2014-15 DECLARING TOTAL INCOME AT RS.3,50,730/.THECASEWASSELECTEDFORSCRUTINYUNDERCASSLIMITEDCRITERIA, ACCORDINGLY STATUTORY NOTICES UNDER SECTION 143 (2) AND 142 (1) OF THE INCOME MS. PARINITA ANIL KHOT ITA NO. 4016/M/2019 2 TAXACT,1961(INSHORTACT).INRESPONSE,A.R.OFTHEASSESSEEATTENDEDANDFILED RELEVANT INFORMATION AS CALLED FOR. DURING ASSESSMENT PROCEEDINGS, AO OBSERVED THAT ASSESSEE HAS TAKEN LOAN FROM THE FOLLOWING PERSONS AND THE AMOUNTINVOLVED: NAME AMOUNT OFLOAN (RS.) REMARK INLOANCONFIRMATION NANDINI SKEMPWADA RS.2,00,000/- IT WAS NOT POSSIBLE FOR ME TO ARRANGE THE FUNDS IMMEDIATELY WITHIN SHORT SPAN OF TIME. HENCE, I SPONSORED HER STUDIES BY WAY OF FRIENDLY LOAN IN CASH OF RS. TWOLAKHSINJULY 2013. ARUNBAPUSAHEBKHOT RS.2,50,000/- THE LOAN IS INTEREST FREE LOAN & THE SAME HAS BEEN GIVEN OUT OF MY LOVE ANDAFFECTIONTOWARDSHERANDTOASSIST HER FOR COMPLETING HER POST- GRADUATION COURSE. LOAN AMOUNT WAS GIVENINCASH. PADMANABHA PARNISAPPA IJARI RS.1,00,000/- I ASSISTED MY GRANDDAUGHTER FOR HER MEDICALSTUDIESINCASH.IGIFTEDHERRS. ONE LAKH. PRAJAKTAKHOT RS.1,00,000/- THESAMEISINTERESTFREELOANGIVENTO HER OUT OF MY LOVE AND AFFECTION TO ENABLE HER TO COMPLETE HER HIGHER EDUCATION. BASED ON THE ABOVE OBSERVATION, AO INITIATED THE PROCEEDINGS UNDER SECTION 269SS AGAINST THE ASSESSEE FOR ACCEPTING LOANS/SPECIFIED SOME OF RS.6,50,000 IN CASH. ACCORDINGLY SHOW CAUSE NOTICE UNDER SECTION 271D OF THE ACT WAS ISSUED AND SERVED ON THE ASSESSEE. BASED ON THE SUBMISSIONS OF THE ASSESSEE,THEAMOUNTRECEIVEDFROMGRANDMOTHERMS.PADMANABHAWASDELETED ANDFORTHE REMAININGLOAN AMOUNTOF RS.5,50,000/,THE PENALTYUNDERSECTION 271D WAS LEVIED. AGGRIEVED WITH THE ABOVE ORDER, ASSESSEE FILED AN APPEAL BEFORELD.CIT(A),AFTERCONSIDERINGTHESUBMISSIONSOFTHEASSESSEE,LD.CIT(A) SUSTAINEDTHEPENALTYLEVIEDUNDERSECTION271DOFTHEACTWITHTHEOBSERVATION MS. PARINITA ANIL KHOT ITA NO. 4016/M/2019 3 THAT THE LOANS ARE TAKEN IN CASH, THE PROVISIONS OF SECTION 269SS ARE ATTRACTED ANDASA CONSEQUENCE OFPENAL PROVISIONSOF SECTION 271DAREATTRACTED. 3. AGGRIEVED WITH THE ABOVE ORDER, ASSESSEE PREFERRED AN APPEAL BEFORE US RAISINGFOLLOWINGGROUNDOFAPPEAL : THE JOINT COMMISSIONER OF INCOME TAX-24(3) HAS ERRED IN LEVYING PENALTY RS.5,50,000/- U/S 271D OF THE INCOME TAX ACT, 1961 AS THE ASSESSEE FAILED TOCOMPLY WITH THE PROVISIONS OF SECTION 269SS OF THE ACT. THE ASSESSEE APPEALS THAT THE JOINT COMMISSIONER MAY BE DIRECTED TO WITHDRAW THE ABOVE PENALTY OF RS.5,50,000/- U/S 271D OFTHE INCOMETAX ACT, 1961. ATTHETIMEOFHEARINGITISBROUGHTTOOURNOTICEBYTHEA.R.OFTHEASSESSEE THAT THE ASSESSEE HAS TAKEN LOAN FROM HER RELATIVESI.E. HER SISTER(PRAJAKTA ANIL KHOR), UNCLE (ARUN BAPUSAHEB KHOT) AND AUNTIE (NANDINI KEMPWADE) FOR HER HIGHER EDUCATION DURING THIS YEAR. ALONG WITH THE ABOVE SUBMISSION, LD. AR BROUGHT TO OUR NOTICE THE CONFIRMATION LETTERS FROM ALL THE ABOVE PARTIES AND FILEDTHE SAME BEFORE US. ON THE OTHERHAND, THE LD. AR RELIEDON ORDERS PASSED BY LOWERAUTHORITIES. 4. CONSIDEREDTHE RIVAL SUBMISSIONSANDMATERIAL ON RECORD.WE NOTICE THAT ASSESSEE HAS TAKEN LOAN FROM HER RELATIVES IN VARIOUS DATES IN CASH IN ORDER TO MEET HERHIGHEREDUCATION EXPENSES. WE NOTICE THAT ALL THESE LOANS WERE TAKEN FROMCLOSERELATIVESFORTHEPURPOSEOFHIGHEREDUCATION.ASHELDBYTHEHONBLE MADRASHIGHCOURTINCITVERSUSBALAJITRADERSTHATWHENTHEREISANIMMEDIATE NEED OF MONEY THE PERSON CANNOT GET IT IMMEDIATELY FROM A NATIONALIZED BANK. TO SATISFY SUCH IMMEDIATE REQUIREMENT OF MONEY A PERSON NORMALLY APPROACHES THE MONEYLENDER OR A FRIEND OR RELATIVE WHO COULD LEND MONEY IMMEDIATELY. IN THOSE CIRCUMSTANCES IT CANNOT BE SAID THAT THE ASSESSEE HAS MS. PARINITA ANIL KHOT ITA NO. 4016/M/2019 4 ENTERED INTO A TRANSACTION TO AVOID THE PAYMENT OF TAX OR TO DEFRAUD THE REVENUE.EVENINTHISCASE,THEASSESSEEHASTAKENLOANSFROMRELATIVESTOFINANCE HER HIGHER EDUCATION. WE DO NOT SEE ANY REASON TO IMPOSE A PENALTY IN THE CIRCUMSTANCESOFTHISCASEWHERETHEASSESSEEHASTAKENLOANFROMHERRELATIVES WITHOUTAPPROACHINGANYBANKINGINSTITUTION.ACCORDINGLY,THEPENALTYIMPOSED BY THE REVENUE AUTHORITIESARE DELETED. 5. IN THE NET RESULT,APPEALFILEDBYTHEASSESSEEISALLOWED. ORDER PRONOUNCEDINTHEOPENCOURTON 02/06/2021. SD/- SD/- ( MAHAVIRSINGH ) ( S. RIFAURRAHMAN ) VICE PRESIDENT ACCOUNTANTMEMBER MUMBAI; DATED:02/06/2021 RAHUL SHARMA,SR. P.S. COPYOFTHEORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR, ITAT,MUMBAI 6. GUARDFILE. BY ORDER, //TRUE COPY// (DY./ASSISTANTREGISTRAR) ITAT,MUMBAI