It has been held by the Appellate Tribunal that merely because loan taken by assessee from his father for purchasing the assets was shown as debt in his father’s balance sheet, same need not be treated as violation of the provision of s. 269SS and attracts the levy penalty u/s 271D of the Act . (A.Y. 2009-10)
Gokavarapu Venkata Satya Durga Prasad v. Addl. CIT (2018) 194 TTJ 14 (Visakha)(UO)(Trib.)
S. 271D : Penalty-Accepts any loan or deposit–loan received from father – same could be treated as gift and not loan – levy of penalty unjustified.