Case Law Details
Vijapurapu Sudha Rao Vs ITO (ITAT Visakhapatnam)
Introduction: The article delves into the case of Vijapurapu Sudha Rao vs ITO, as adjudicated by ITAT Visakhapatnam. The appellant contested the penalty imposed under section 271D of the Income Tax Act for receiving a significant cash amount in the sale of an immovable property.
Detailed Analysis: The assessee, Vijapurapu Suryanarayana Rao, filed an appeal against the order of the Commissioner of Income Tax (Appeals), challenging the penalty under section 271D for receiving ₹29,65,000 in cash during the sale of a property. The contention was that the cash was deposited in the bank promptly, and the transaction was genuine.
The appellant argued that no advance in cash was taken before registration, and the entire sale consideration was received through a cheque and later in cash. The property was sold at a lower price due to the distress sale nature, as the appellant, a senior citizen, faced challenges in finding suitable buyers.
The core issue revolved around the violation of section 269SS, prohibiting the receipt of cash in relation to the transfer of an immovable property. The appellant contended that the cash received was deposited into the bank, indicating the genuineness of the transaction. The appellant also paid taxes on the capital gains arising from the sale.
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