DCIT Vs Tapadiya Construction Ltd. (ITAT Pune)
ITAT Pune held that sum has been received for work relating to interior and other finishing work and total consideration is received through banking channel. Hence, there is no violation of section 269SS of the Income Tax Act. Hence, penalty u/s. 271D not leviable. Accordingly, appeal of revenue dismissed.
Facts- The assessee is a limited company, engaged in the business of construction and property development since last many years. Based on the assessee’s statement that an additional amount of Rs. 1,37,73,000/- was received, AO observed that the assessee has violated the provisions of sec. 269SS of the Act. Accordingly, penalty proceedings u/s. 271D of the Act were initiated. AO was not satisfied with the submissions and levied penalty of Rs. 1,37,73,000/- u/s. 271D r.w.s. 269SS of the Act.
CIT(A) deleted impugned penalty u/s. 271D. Being aggrieved, revenue has preferred the present appeal.
Conclusion- It clearly establishes that sale consideration for transfer of immovable property in the shape of row house has been received through banking channel and since the total amount has been received as agreed, there remains no question to receive consideration in cash over and above the agreed sale consideration for transfer of immovable property in the form of row house in absence of any material found during the course of search. Same is the situation for all the row houses allotted to 12 customers, the reference of which is available in the seized diary. Under these given facts, it can be safely concluded that no specific sum as referred in section 269SS of the Act has been received in any mode otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system against transfer of immovable property.
