Section 269SS Not Applicable to Broker Acting as Agent or Facilitator of Payment

R. Anbuvelrajan Vs ACIT (ITAT Chennai) In the case of R. Anbuvelrajan vs. ACIT (ITAT Chennai), the tribunal deliberated on whether a land aggregator acting as a broker could be penalized under Section 269SS of the Income Tax Act for receiving cash payments. Section 269SS prohibits acceptance of loans, deposits, or specified sums exceeding ₹20,000 in cash. However, exceptions exist for fiduciaries acting on behalf of principals. The bench analyzed the statutory provisions and ruled that such brokers or agents cannot be treated as recipients of the “specified sum” in their own right. The t...