PARAYIL BALAN NAIR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal is filed by the assessee under Section 260A of the Income Tax Act, challenging the order passed by the Income Tax Appellate Tribunal, Cochin Bench in ITA No.460/2013 pertaining to the assessment year 2008-2009. In the appeal filed by the Revenue, Tribunal set aside the order passed by the Commissioner of Income Tax (Appeals), by which the order passed by the Joint Commissioner of Income Tax levying penalty on the assessee under Section 271D of the Income Tax Act was set aside and the penalty levied was restored.

(2.) We heard the learned Senior Counsel for the appellant and the learned Senior Standing Counsel for the Revenue.

(3.) Brief facts of the case are that the assessee is a non-resident Indian. Based on letter dated 13.12.2010 from one K.C.Basheer to the Assistant Commissioner of Income Tax, Calicut where Sri.Basheer confirmed that he had paid a sum of Rs.15,00,000/- to the assessee on behalf of his brother Sri. K.C. Usman, a non-resident Indian doing business in Dubai. He also confirmed that the amount was paid in cash on 21.01.2008 after withdrawing the same from his Savings Bank Account maintained at the Indian Overseas Bank, Kadirur. The letter with the subject; "confirmation of loan to Mr.Balan Nair (K.V.R. Tower), Kannur", reads thus: