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of <h1>No penalty under Section 271D as full cash payment for property sale was made at registration per Section 269SS</h1> <h3>Bhaskar Thattaruthodiyil Nair, Versus The Income Tax Officer, Ward-2, PALAKKAD. KERALA.</h3> Bhaskar Thattaruthodiyil Nair, Versus The Income Tax Officer, Ward-2, PALAKKAD. KERALA. - TMI ISSUES: Whether acceptance of cash payment as final consideration for sale of immovable property before the sub-registrar violates section 269SS of the Income Tax Act, 1961.Whether penalty under section 271D is leviable for receipt of such cash payment. RULINGS / HOLDINGS: The acceptance of cash payment as final consideration for immovable property sale made before the sub-registrar at the time of registration does not constitute a violation of section 269SS of the Act.Accordingly, penalty under section 271D is not leviable in such circumstances. RATIONALE: The Court relied on the statutory definition of 'specified sum' under Explanation (iv) to section 269SS, which applies to sums 'receivable, whether as advance or otherwise, in relation to transfer of an immovable property.'Precedent from a coordinate bench held that the provision targets acceptance of cash advances and does not apply to final payments made at the time of registration before the sub-registrar, as the legislative intent was to curb black money generation through advance cash payments in real estate transactions.The Court followed this interpretation, emphasizing that the penalty provision under section 271D is triggered only upon violation of section 269SS, which was not the case here since the cash was received as final payment during registration.
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