Sale of Immovable Property Whether Penalty under Section 271D for Receiving Cash for Sale of Immovable Property is leviable in each and every case?

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The Tax Publishers Income Tax--Sale of Immovable Property Whether Penalty under Section 271D for Receiving Cash for Sale of Immovable Property is leviable in each and every case? Akhilesh Kumar Sah The aim of the Government has been to counteract provisions relating to cash transactions involving black money for which many provisions have been introduced. Section 269SS as well as Section 269T is an example to the above. This article discusses a recent case of Visakhapatnam ITAT (titled as Vijapurapu Sudha Rao v. ITO [ITA No.111/Viz/2023 A.Y. 2017-18, decided on 29-11-2023]. Some of the cash transactions remain genuine and can be kept out of taxing provisions. 1. Introduction (i) Scheme of Section 269SS Subject to Provisos and Explanations to Section 269SS of the Income Tax Act, 1961 (Hereinafter referred to as 'the Act') it incorporates mode of taking or accepting certain loans, deposits and specified sum, as follows: -- No person shall take or accept from any other person (Hereinafter referred to as 'the depositor'), 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 or through such other electronic mode as may be prescribed, if, - (a) the amount of such loan or deposit or specified sum or the aggregate amount of such loan, deposit and specified sum; or (b) on the date of taking or accepting such loan or deposit or specified sum, any loan or deposit or specified sum taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid; or (c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more: Provided that the provisions of this section shall not apply to any loan or deposit or specified sum taken or accepted from, or any loan or deposit or specified sum taken or accepted by, - (a) the Government; (b) any banking company, post office savings bank or co-operative bank; (c) any corporation established by a Central, State or Provincial Act; (d) any Government company as defined in clause (45) of Section 2 of the Companies Act, 2013 (18 of 2013); (e) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette: SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Sale of Immovable Property

Whether Penalty under Section 271D for Receiving Cash for Sale of Immovable Property is leviable in each and every case?

Akhilesh Kumar Sah

The aim of the Government has been to counteract provisions relating to cash transactions involving black money for which many provisions have been introduced. Section 269SS as well as Section 269T is an example to the above. This article discusses a recent case of Visakhapatnam ITAT (titled as Vijapurapu Sudha Rao v. ITO [ITA No.111/Viz/2023 A.Y. 2017-18, decided on 29-11-2023]. Some of the cash transactions remain genuine and can be kept out of taxing provisions.

1. Introduction

(i) Scheme of Section 269SS

Subject to Provisos and Explanations to Section 269SS of the Income Tax Act, 1961 (Hereinafter referred to as 'the Act') it incorporates mode of taking or accepting certain loans, deposits and specified sum, as follows:

-- No person shall take or accept from any other person (Hereinafter referred to as 'the depositor'), 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 or through such other electronic mode as may be prescribed, if, -

(a) the amount of such loan or deposit or specified sum or the aggregate amount of such loan, deposit and specified sum; or

(b) on the date of taking or accepting such loan or deposit or specified sum, any loan or deposit or specified sum taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid; or

(c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b),

is twenty thousand rupees or more:

Provided that the provisions of this section shall not apply to any loan or deposit or specified sum taken or accepted from, or any loan or deposit or specified sum taken or accepted by, -

(a) the Government;

(b) any banking company, post office savings bank or co-operative bank;

(d) any Government company as defined in clause (45) of Section 2 of the Companies Act, 2013 (18 of 2013);

(e) such other institution, association or body or class of institutions, associations or bodies which the Central Government may, for reasons to be recorded in writing, notify in this behalf in the Official Gazette: