Cash sale consideration at registration did not trigger section 269SS, so penalty under section 271D was deleted.

Receipt of the full sale consideration in cash at the time of registration of a sale deed was held not to attract section 269SS of the Income-tax Act, 1961, because that provision is directed at advances or other specified sums rather than final consideration paid on conveyance registration. On the recorded facts, the deed showed payment before the registration authorities, so no statutory breach was established. Penalty under section 271D could not therefore be sustained, and the levy was deleted in favour of the assessee.

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Issues: Whether receipt of the entire sale consideration in cash at the time of registration of the sale deed attracted section 269SS of the Income-tax Act, 1961 and, consequently, penalty under section 271D of the Income-tax Act, 1961.

Analysis: The issue was treated as covered by earlier Tribunal decisions holding that section 269SS is aimed at advances or other specified sums and does not extend to cash received as the final sale consideration at the time of registration of the conveyance. On the facts, the sale deed recorded that the entire consideration had been paid before the registration authorities, and therefore no statutory violation was established.

Conclusion: There was no violation of section 269SS and, therefore, penalty under section 271D could not be sustained. The penalty was directed to be deleted, in favour of the assessee.

Final Conclusion: The appeal succeeded and the penalty levy was set aside on the ground that receipt of sale consideration at registration did not attract the penal consequence invoked.

Ratio Decidendi: Receipt of the full sale consideration in cash at the time of registration of the sale deed does not constitute a violation of section 269SS of the Income-tax Act, 1961, and penalty under section 271D cannot be imposed on that basis.

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