SIPPY DUBEY,BHAGALPUR vs. JCIT, RANGE-1, BHAGALPUR, BHAGALPUR

ITA 501/PAT/2024Status: DisposedITAT Patna24 September 2026AY 2015-166 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee failed to substantiate a reasonable cause for accepting the loan in cash, and the argument of a family arrangement was not acceptable as each assessee is independent under the Income Tax Act. The repayment of the loan did not negate the contravention at the time of acceptance.

What were the facts?

The assessee received an unsecured loan of Rs. 20,50,000/- in cash from her husband for her share trading business. The Assessing Officer initiated penalty proceedings under Section 271D of the Income Tax Act for contravention of Section 269SS.

What were the issues?

Whether accepting a cash loan from a husband constitutes a reasonable cause for avoiding penalty under Section 271D for contravention of Section 269SS, and whether a family arrangement exempts from these provisions.

Which sections of the Income-tax Act were involved?

Section 269SS,Section 271D,Section 273B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PATNA BENCH, PATNA

Before: SHRI GEORGE MATHAN & SHRI LAXMI PRASAD SAHU

For Appellant: Shri Abhi Sarkar, Advocate
For Respondent: Shri Ravi Kant Chowdhary, Sr. DR
Hearing: 21.09.2026Pronounced: 24.09.2026

PER LAXMI PRASAD SAHU, AM: This appeal is filed by the assessee against the order passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by National Faceless Appeal Centre, Delhi [hereinafter referred to as ‘the ld. CIT(A)’], dated 25.06.2024 arising out of penalty order passed by the Assessing Officer (In short, ‘the AO’) u/s 271D of the Act, dated 12.02.2018 on the following grounds of appeal:

“1. On the facts and in the circumstances of the case and in law the learned Commissioner of Income Tax (Appeal) erred in Confirming the penalty of Rs.20,50,000/- without appreciating the intent behind introduction of the penalty under Section 271D.

The order continues below.

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