RBANMS Educational Institution Vs B. Gunashekar & Another (Supreme Court of India)
Supreme Court issued directions to all Courts including Registrar where any claim is made by any one of cash having been paid of Rs 2.00 lakh or above to report the same to jurisdictional Income Tax Deptt to verify the transaction and examine violation of Section 269ST of IT Act
Supreme Court while delivering a judgement where a suit was filed, issued directions to all Courts including Registrar where any claim is made by any one of cash having been paid of Rs 2.00 lakh or above to report the same to jurisdictional Income Tax Deptt to verify the transaction and also issue direction to Income Tax Deptt to verify the same and examine violation of Section 269ST of law.
The relevant para reads as under:-
“When a suit is filed claiming Rs.75,00,000/- paid by cash, not only does is create a suspicion on the transaction, but also displays, a violation of law. Though the amendment has come into effect from 01.04.2017, we find from the present litigation that the same has not brought the desired change. When there is a law in place, the same has to be enforced. Most times, such transactions go unnoticed or not brought to the knowledge of the income tax authorities. It is settled position that ignorance in fact is excusable but not the ignorance in law.
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