MOHAMAD TASLIM SHAIKH,MUMBAI vs. ITO 15(2)(3), MUMBAI
In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.
What did the Tribunal hold?
The Tribunal held that the transaction was genuine and between close relatives (father and son). It found that there was a reasonable cause for accepting the cash loan for the property purchase.
What were the facts?
The assessee's father paid Rs. 10,69,000/- on behalf of the assessee for property purchase, which was treated as a loan. The Assessing Officer levied a penalty under Section 271D for accepting the amount in cash.
What were the issues?
Whether a cash payment from father to son for property purchase constitutes a reasonable cause for not adhering to Section 269SS, thereby waiving the penalty under Section 271D.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cases cited in this judgment(1)Show listHide list
Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.
- CIT v. Dimpal Yadav14 citing379 ITR 177 · 2015 · HC
Income Tax Appellate Tribunal, MUMBAI “B” BENCH, MUMBAI
Before: SHRI SHAILENDRA KUMAR YADAV, JUDICIAL & SHRI RAJESH KUMAR.
(Assessment Year:2009-10) Mr. Mohamad Taslim Shaikh 21, Ashiyana, Salim Compound, Chimat Pada Road, Andheri (East), Mumbia – 400 059 Appellant Vs. Addl. Commissioner of Income Tax, Range – 15 (2), Mumbai 400 007 Respondent PAN: AWQPS1127C अपीलाथ� क� ओर से /By Appellant : Dr. K. Shivaram, Sr. Advocate & Ms. Nilam Jadav ��यथ� क� ओर से/By Respondent : Shri Randhir Gupta, D.R. सुनवाई क� तारीख/Date of Hearing : 01.08.2016 घोषणा क� तारीख/Date of Pronouncement : 04.08.2016 ORDER PER SHAILENDRA KUMAR YADAV, J.M: This appeal has been filed by assessee against the order of Commissioner of Income-Tax (Appeals)-26, Mumbai, dated 21.09.2012 for A.Y. 2009-10 on following ground:
A.Y. 09-10 [Mr. Mohamad Taslim shaikh vs. Addl. CIT] Page 2
“1. On the facts and in the circumstances of the case the Hon. C.I.T.(A)-26, Mumbai erred in upholding levy of penalty of Rs.10,69,000/- u/s.271D of the Income Tax Act, 1961.”
Assessee is an individual. During year under consideration, assessee filed his return of income declaring total income of Rs.1,87,750/-. Assessee’s father Mohd. Salim Shaikh had paid Rs.10,69,000/- on behalf of assessee to purchase of property, which was treated as loan in his books of account. Assessing Officer initiated penalty u/s.269SS r.w.s. 271D of the Act and issued a show cause notice dated 30.12.2012 u/s.271D of the Act. In response to same, assessee filed letter dated 23.01.2012 stating that penalty initiated may be for levy of penalty be waived. Assessing Officer levied penalty of Rs.10,69,000/-.
2.1 Matter was carried before the First Appellate Authority, wherein assessee filed submissions vide letter dated 15.09.2012 and 17.09.2012, but CIT(A) confirmed the penalty in question.
2.2 Same has been opposed before us on behalf of assessee inter alia submitting that transactions were genuine for the purpose of purchasing immovable property. The father of assessee had paid the amount of Rs.10,69,000/- directly to the party from whom the assessee had purchased the property. When all the details on record of the Revenue and it was a transaction between father and son for a reasonable cause then there was no scope of levy of penalty u/s.271D of the act. He placed reliance on certain case laws and submitted that in this background, penalty in question be deleted. On the other hand, A.Y. 09-10 [Mr. Mohamad Taslim shaikh vs. Addl. CIT] Page 3 ld. Departmental Representative supported the orders of authorities below.
2.3 After going through rival submissions and perused the material on record, we find that similar addition was deleted by ITAT, Ahmedabad ‘A’ Bench in case of ITO vs. Dattuprasad Manharlal Dave in wherein on similar issue, Tribunal has granted relief to assessee by observing as under: “2.1 Matter was carried before the First Appellate Authority, wherein various contentions were raised on behalf of the assessee. Before the CIT(A), the stand of the assessee has been that his son was applying for Visa for higher studies abroad, hence to get Visa, assessee needed urgent money to show the higher balance in bank account and therefore, he had borrowed the money from close relatives viz, father, brother and wife. In the penalty proceedings, it was submitted that bonafide belief coupled with the genuineness of transactions would constitute reasonable cause within the meaning of provisions of Sec.273B of the Act. Further, a family transaction between two independent assessees based on an act of casualness would establish reasonable cause within the meaning of provision of Sec. 273B of the Act. In the appellate proceedings, the CIT(A) having considered all these submissions of assessee, observed that the assessee has not only produced close relatives from whom the assessee has taken loan but also given evidence that the loan was given in cash, which was withdrawn by their own respective account on the same day or one day before; thus, he held that the genuineness of transaction was established and the assessee could also establish the reasonable cause for the same. Thus, the CIT(A) has rightly deleted the penalties u/s 271D & 271E of the Act, because the assessee has shown reasonable cause to accept the money from his close relatives like father, brother and wife and payment thereof. Therefore, these reasoned findings of the CIT(A) need no interference from our side. We uphold the same. A.Y. 09-10 [Mr. Mohamad Taslim shaikh vs. Addl. CIT] Page 4
In the result, the appeal of the Revenue is dismissed.” 2.4 Similar view has been taken by Hon’ble Allahabad High Court in case of CIT vs. Smt. Dimpal Yadav & Akhilesh Kumar Yadav (2015) 379 ITR 177 (All)(HC), wherein Hon'ble High Court upheld the order of Tribunal inter alia holding that loan transaction was genuine and there was reasonable cause for cash loan in similar situation. In view of above, we are not inclined to concur with the finding of CIT(A). Assessing Officer is directed to delete the penalty levied u/s.271D of the Act because assessee was prevented by reasonable cause to accept the money from his close relative like father for making payment for immovable property.
3. In the result, the appeal filed by assessee is allowed.
Pronounced in the open Court on this the 4th day of August, 2016.
More judgments on Section 271D
- Sujatha Vaddanapu, Nalgonda vs ITO, Ward-1, NalgondaITA 2048/HYD/2026[2020-21]Status: Disposed16 Oct 2026AY 2020-21
- Inder Lal Ramrakhyani, Dhamtari vs ITO, DhamtariITA 694/RPR/2026[2014-15]Status: Disposed14 Oct 2026AY 2014-15
- Assistant Commissioner of Income Tax… vs Harshit Singhania Buildcon, RaipurITA 560/RPR/2026[2022-23]Status: Disposed14 Oct 2026AY 2022-23
- Shree Jalaram Finance, Borsad vs Income Tax Officer, Ward 1(3)(4), PetladITA 1785/AHD/2026[2000-01]Status: Disposed13 Oct 2026AY 2000-01
- Veera Mani Kumari Vattikooti, Hyderabad vs ITO, Ward -11(1), HyderabadITA 1218/HYD/2026[2016-17]Status: Disposed9 Oct 2026AY 2016-17
Recent GST High Court judgments
Search GST case law →- Akshaya Consortium vs. The Assistant Commissioner (St)Andhra Pradesh · 28 Oct 2026
- Dipanshu Aggarwal vs. Director General Of GST IntelligenceDelhi · 28 Oct 2026
- Dezinetree Projects PVT. LTD. vs. Spokes Digital Inc And AnrDelhi · 28 Oct 2026
- Jaydeep Jayantilal Hudaka vs. State Of GujaratGujarat · 28 Oct 2026
- Commissioner/Additional Commissioner Of Central Tax vs. M/S INDIA Agro Exports Private LimitedKarnataka · 28 Oct 2026