K.S. Jhaveri, J.

1. By way of this Appeal, the Appellant has challenged the order and judgment dated 16.11.2006 of the Income Tax Appellate Tribunal, Rajkot (SMC) Bench, Rajkot in ITA No. 393/RJT/2006 for the Assessment Year : 2003-2004 whereby the Tribunal reversed the order and judgment of the CIT (Appeals).

2. While admitting the matter on 28.11.2007, the following substantial question of law was framed by the Court for consideration:-

"Whether on the facts and in the circumstances of the case, Income Tax Appellate Tribunal was right in law in confirming the penalty u/s. 271D of the Income Tax Act, 1961 even though the transaction of accepting Rs. 2 lacs from appellant's son was non-commercial and personal in nature, apart from otherwise found to be genuine?"

3. The facts of the case are that the appellant an individual has income from medical practice and agriculture. The appellant had filed his return of income for Assessment Year : 2003-2004 on 31.03.2004. During the course of assessment proceedings, the Assessing Officer noticed that the appellant had accepted a sum of Rs. 2,00,000/- from his son; the appellant's son had issued a cheque in the name of the appellant, bu