No violation of section 269SS if the amount exceeding Rs. 20,000/- is accepted at the time of sale Deed

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No violation of section 269SS if the amount exceeding Rs. 20,000/- is accepted at the time of sale Deed

 

 

No one can accept the cash of Rs. 20,000/- or more against sale of the property. Violation may result in a penalty of an equivalent amount under section 271DS.

Here is a case wherein a Penalty u/s. 271D was imposed for the reason that the cash was received from a sales transaction of immovable property.

The case detail is as under:

ITAT CHENNAI

 THE INCOME TAX OFFICER, WARD-2, KANCHIPURAM

VERSUS

SHRI R. DHINAGHARAN (HUF),.

 ITA No. 3329/Chny/2019

In this case, It was alleged that there is a violation of provisions of Sec.269SS in relation to acceptance of specified sum of money in relation to transfer of immovable properties.

On appeal before the court it was submitted that the Finance Minister while placing the Finance Bill, 2015 in her budget speech highlighted the intention of the amendment. It was remarked that the amendment in Explanation to Section 269SS with regard to ‘sum specified’ means only applicable for advance receivable, whether as advance or otherwise means advance can be in any manner.

With the above observation, it was held that the provision will not apply to the transaction that happens at the time of final payment at the time of registration of sale deed and payment is made before sub-registrar at the time of registration of property.

The court observed as under:

“12. In the present case before us, it is an admitted fact that all sale deeds were registered and cash payment was made at one go before the sub-registrar at the time of registration of sale deeds of plots. Hence, in our view, there is no violation of provisions of section 269SS of the Act in the present case in the given facts and circumstances of the case and hence, penalty is not exigible in this case. Hence, we confirm the order of CIT(A) deleting the penalty but on entirely different ground i.e., on jurisdictional issue only. Accordingly, the appeal of the Revenue is dismissed.

13. In the result, the appeal filed by the Revenue is dismissed.

 

The copy of the order is as under:

[pdf-embedderurl=”https://thetaxtalk.com/wp-content/uploads/2024/01/1703848091-ITA-3329-OF-DHINAGHARAN-1.pdf” title=”1703848091-ITA 3329 OF DHINAGHARAN”]

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