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TMI Blog2023 (12) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... receipt of any amount by way of cash in relation to the transfer of any immovable property. The objective of the amendment proposed in 269SS of the Act is to curb generation of black money. In the instant case the fact is that cash received by the assessee has been deposited by the assessee into the bank account, hence does not attract the provisions of section 269SS of the Act since there is no suppression of cash receipts by the assessee. The assessee has also offered the capital gains to tax. Further, the explanation given by the assessee for receipt of sale consideration of Rs. 29,65,000/- constitutes a reasonable cause as contemplated in section 273B of the Act and the assessee has accepted the cash under inevitably unavoidable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of Rs. 44,81,290/- which includes capital gains of Rs. 34,65,000/- on sale of vacant site admeasuring 231 sq yds at Yendada Village, Visakhapatnam. On receiving the information by the Department that during the FY 2016-17 relevant to the AY 2017-18 the assessee sold an immovable property to Mrs. Pusapati Appala Narsimha Raju for a total consideration of Rs. 34,65,000/- out of which the assessee received an advance of Rs. 5 lakhs on 01/12/2015 through cheque and the remaining amount of Rs. 29,65,000/- on 04/04/2016 by cash, the Ld. AO-NFAC observed that since the assessee received Rs. 29,65,000/- in cash, which resulted in violation of the provisions of section 269SS of the Act and therefore initiated the penalty proceedings U/s. 271D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in upholding the penalty of Rs. 29,65,000/- levied by the Assessing Officer U/s. 271D of the Act. 4. Any other grounds may be urged at the time of hearing. 3. At the outset, the Ld. Authorized Representative submitted that the assessee did not receive any cash in advance for sale of the immovable property and Rs. 5 lakhs was received by cheque as an advance on 1/12/2015. The Ld. AR further submitted that the assessee s sale of property was a distress sale as the assessee had only a registered Will in his name and his mother s name and being a senior citizen the assessee could not procure proper buyers for the site. The Ld. AR also further submitted that under these circumstances, as explained above, the assessee sold the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... core issue involved in the grounds raised by the assessee is with respect to validity of levy of penalty U/s. 271D on account of receipt of cash in relation to transfer of immovable property by the assessee attracting the provisions of section 269SS of the Act. The admitted facts are that the assessee has received cash partly for the sale of immovable property from the buyer to the extent of 29,65,000/-. Section 269SS of the Act as amended by Finance Act, 2015 wef 1/6/2015 stipulates that no person shall take or accept from any other person, any loan or deposit or any specified sum, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account. The specified sum has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee into the bank account, hence does not attract the provisions of section 269SS of the Act since there is no suppression of cash receipts by the assessee. The assessee has also offered the capital gains to tax. Further, the explanation given by the assessee for receipt of sale consideration of Rs. 29,65,000/- constitutes a reasonable cause as contemplated in section 273B of the Act and the assessee has accepted the cash under inevitably unavoidable circumstances as explained by the Ld. AR in his arguments and immediately on receipt of the cash, the assessee deposited the same in the bank account which contemplates the genuineness of the transaction and moreover the assessee has paid the capital gain tax thereon. Under these ci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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