Ashok Ramanlal Tamboli Vs ITO (ITAT Ahmedabad)
Summary: The appeal was filed by the assessee against the order dated 21 January 2026 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, under Section 250 of the Income Tax Act, 1961, for Assessment Year 2021-22. The dispute concerned a penalty of ₹31,95,813 imposed by the Assessing Officer under Section 271D of the Act and confirmed by the CIT(A).
The assessee, along with other co-owners, sold a property for a consideration of ₹27,90,00,000. Under the sale deed, the assessee received his share of the sale consideration amounting to ₹1,16,25,000. In addition to that amount, the assessee received ₹31,95,813 in cash as sale proceeds. Initially, the assessee declared only his share of the consideration recorded in the sale deed in his return of income and did not disclose the cash component. Subsequently, the assessee filed a revised return and disclosed the cash amount. The Assessing Officer accepted the revised return but imposed penalty under Section 271D for receiving ₹31,95,813 in cash, treating the receipt as a violation of Section 269SS. The CIT(A) confirmed the penalty.
Before the Tribunal, the assessee submitted that he and his family members were agriculturists and were not aware of the relevant provisions prohibiting acceptance of sale consideration in cash. It was submitted that the family was in dire need of funds and had collectively decided to sell their ancestral property. According to the assessee, the purchasers were willing to buy the property only if part of the consideration was accepted by cheque and part in cash. Since the assessee and his family members had no choice in view of their financial need, they accepted the partial cash consideration.
