Case Law Details
ITO Vs R. Dhinagharan (HUF) (ITAT Chennai)
ITAT Chennai held that there is no violation of provisions of section 269SS when all sale deeds were registered and cash payment was made at one go before the sub-registrar at the time of registration of sale deeds of plots. Hence, penalty u/s 271D not leviable.
Facts- The assessee during the course of business sold various plots to various people for a total consideration of Rs. 3,03,46,301/- in cash. The assessee has not received any advance but entire sale consideration were received at the time of registration of sale deeds in cash and non transaction was done through banking channels. Accordingly, the A.O referred the matter to the JCIT for levy of penalty u/s. 271D of the Act for violation of the provisions of Section 269SS of the Act and the JCIT, Kanchipuram Range, Kanchipuram levied penalty u/s. 271D of the Act vide order dated 12.06.2019 for an equivalent amount of cash received of sales transaction for a total consideration of Rs. 3,03,46,301/-.
CIT(A) deleted the penalty. Being aggrieved, revenue has preferred the present appeal.
Conclusion- In the present case, the sale consideration was received in cash at the time of execution of multiple sale deeds from different persons for the sale of plots and accepted as genuine in the assessment order completed on 23.05.2018 and admittedly there was no advance received by the seller. The amended provisions of Section 269SS of the Act was applied by the A.O to the facts of the present case only to the sale consideration received as ‘specified sum’ and on such presumption the JCIT levied penalty u/s 271D of the Act. The intention of the amendment is very clear right from the Budget speech of the Finance Minister that the said amendment is brought into the statute in Section 269SS of the Act would get attracted to sum received in cash as an advance in an immovable property transaction and not to the completed transaction namely cash received as a sale consideration at the time of execution of the registered sale deed.
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