Case Law Details
Jayaram Basani Vs ACIT (ITAT Hyderabad)
ITAT Hyderabad held that in case of violation of provisions of section 269SS of the Income Tax Act, penalty can be only in the year in which violation has taken place and not in any assessment year.
Facts- The assessee had sold an immovable property and the sale proceeds were received in cash amounting to Rs. 13,63,000/-. On observation that the cash amounting to more than Rs.20,000/- was accepted in contravention to the provisions of section 269SS by the Assessing Officer, a show cause notice u/s 271D was issued and served on the assessee on 04.03.2021.
The assessee had replied that he had accepted the cash amount of Rs. 13,63,000/- as he needed the cash for his medical treatment and expenses and after demonetization, he had deposited the same in his bank account. The reply made by the assessee was not accepted by AO and he initiated penalty proceedings u/s 271D of the Act for the contravention to the provisions of section 269SS.
During the penalty proceedings, AO observed that the assessee failed to explain the reasonable cause for accepting the cash amounting to more than Rs.20,000/- in contravention to the provisions of section 269SS, and therefore, as exception laid down u/s 273 was also not applicable, AO held it as a fit case for imposition of penalty and thus passed order u/s 271D of the Act.
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