Cash consideration for immovable property transfers attracts section 269SS penalty absent proved reasonable cause.

Cash received as consideration for transfer of immovable property was treated as falling within the scope of section 269SS because the expression "specified sum" was read to include sums received in relation to such transfer, including amounts received "otherwise" than as advance. On that basis, acceptance of cash under the sale deed was held to constitute a violation attracting penalty under section 271D. The taxpayer also failed to establish reasonable cause for receiving part of the consideration in cash, so the statutory protection under section 273B was unavailable. The penalty was accordingly sustained.

---

---

Issues: (i) Whether cash receipt of consideration on transfer of immovable property falls within the ambit of section 269SS and attracts penalty under section 271D; (ii) Whether the assessee established reasonable cause so as to claim immunity under section 273B.

Issue (i): Whether cash receipt of consideration on transfer of immovable property falls within the ambit of section 269SS and attracts penalty under section 271D.

Analysis: The expression "specified sum" in section 269SS was read to include any sum received, whether as advance or otherwise, in relation to transfer of immovable property. The word "otherwise" was held to cover all forms of cash receipt connected with such transfer. Since the assessee admittedly received Rs. 15 lakhs in cash under the sale deed, the transaction was treated as a direct violation of section 269SS, which in turn attracted penalty under section 271D.

Conclusion: The cash receipt fell within section 269SS and justified levy of penalty under section 271D.

Issue (ii): Whether the assessee established reasonable cause so as to claim immunity under section 273B.

Analysis: The record did not disclose any sufficient explanation for accepting part of the sale consideration in cash. The assessee did not establish circumstances showing inability of the purchaser to pay by cheque or any other credible cause for the default. In the absence of proved reasonable cause, the statutory protection under section 273B was held unavailable.

Conclusion: The assessee did not establish reasonable cause and was not entitled to relief under section 273B.

Final Conclusion: The penalty for acceptance of cash consideration in relation to the immovable property transfer was sustained, and the appeal was rejected.

Ratio Decidendi: Cash received in relation to transfer of immovable property falls within the scope of section 269SS, and in the absence of proved reasonable cause, penalty under section 271D is leviable.

---