Section 271D Penalty Waived for Cash Payments in Property Sales

Bhaskar Thattaruthodiyil Nair Vs ITO (ITAT Cochin) The Income Tax Appellate Tribunal (ITAT) of Cochin recently addressed a key issue regarding cash payments in real estate transactions in the case of Bhaskar Thattaruthodiyil Nair vs. ITO. The central question was whether a penalty under Section 271D of the Income Tax Act, 1961, could be imposed on an individual who received a cash amount as part of the final sale consideration for an immovable property. Factual Background The assessee, Bhaskar Thattaruthodiyil Nair, was penalized by the tax authorities for receiving ₹20 lakh in cash during t...