Subramanyan Harikumar Vs JCIT (ITAT Cochin)
Section 269SS applies even at Registration: ITAT Cochin terms prior decision in Bhaskar Thattaruthodiyil held Per Incuriam
Assessment of the individual assessee was completed by AO vide 143(3) order dt 10.10.2019accepting the returned income. During the course of assessment proceedings, AO noticed that Assessee had violated provisions of Sec269SS by accepting sale consideration of Rs. 17.50 lakhs in cash against sale of residential property on 29.06.2016. Matter was referred to JCIT, who issued SCN dt 25.10.2019 to Assessee. In response , Assessee filed an explanation admitting the receipt of sale consideration towards the residential property & the same was registered on 29.06.2016, pleading that no advance was received on sale of the said property, therefore, provisions of Sec269SS had no application. However, JCIT had proceeded with levy of penalty of Rs. 17,50,000/- u/s. 271Dvide order dt 19.01.2022 placing reliance on the provisions of clause (iv) of Explanation inserted to Sec269SS. CIT(A) confirmed the penalty.
Before Tribunal, Assessee argued that provisions of Sec 269SS have no application, inasmuch as, the sale consideration was received at the time of registration of the sale deed & hence the transaction does not fall within the purview of Sec269SS.Reliance was placed on Bhaskar Thattaruthodiyil in ITA No. 754/Coch/2023 dt 25.09.24.AO only recorded his satisfaction for initiation of penalty proceedings u/s 271D& not the JCIT & therefore the penalty order is vitiated.
