Case Law Details
Noordeen Ahmed Amina Vs ITO (ITAT Chennai)
The case of Noordeen Ahmed Amina vs ITO centers around an appeal against the confirmation of penalty under section 271D for Assessment Year 2018-19. The penalty was levied by the Assessing Officer (AO) under the belief that the assessee received Rs.5 lakh in cash for the sale of immovable property, in violation of Section 269SS.
The appellant, Noordeen Ahmed Amina, appealed against the penalty levied by the AO under section 271D for accepting Rs.5 lakh in cash as part of the sale consideration for immovable property valued at Rs.50 lakh. The AO deemed this cash receipt as a violation of Section 269SS.
The appellant sold property for Rs.50 lakh, receiving Rs.45 lakh through cheques and Rs.5 lakh in cash. The AO invoked Section 271D and imposed a penalty of Rs.5 lakh for contravening Section 269SS, which prohibits accepting certain amounts in cash. The penalty equals the amount received.
The CIT(A) confirmed the penalty, asserting that the intention of the legislature in amending Section 269SS was to curb cash dealings in immovable property transactions. Even if the transactions are disclosed, the intention was to prevent cash dealings. The CIT(A) held that the appellant’s arguments were not tenable.
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