Meaning of "specified sum" under section 269SS excludes cash sale consideration for immovable property, so section 271D penalty was not attracted.

Cash sale consideration received at the time of the final transfer of immovable property did not amount to a contravention of section 269SS where the Tribunal construed "specified sum" in its Explanation as limited to advance receipts in relation to such transfer. Because the amount was received as sale consideration, not as an advance, section 271D penalty was not attracted and could not survive. The assessee therefore succeeded on the interpretation that cash received as final payment for immovable property falls outside the mischief of the penalty provision.

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Issues: Whether penalty under section 271D of the Income-tax Act, 1961 was leviable where cash was received as sale consideration for transfer of immovable property and the question turned on the meaning of "specified sum" in section 269SS.

Analysis: The assessee received the amount as sale consideration and not as an advance. The Tribunal followed its earlier view that the expression "specified sum" in the Explanation to section 269SS is confined to advance receipts, whether in any form or otherwise, in relation to transfer of immovable property, and does not extend to cash consideration received at the time of final sale transaction. On that interpretation, the cash receipt did not constitute a contravention attracting penalty. Consequently, the penalty could not survive.

Conclusion: Penalty under section 271D was not leviable and the assessee succeeded.

Ratio Decidendi: The expression "specified sum" in section 269SS covers advance receipts in relation to transfer of immovable property and not cash sale consideration received as final payment; therefore, section 271D penalty is not attracted on such receipt.

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