Assessee showed full Rs.14 lakh paid before registration; no breach of s.269SS, penalty under s.271D vacated

ITAT Visakhapatnam held that the assessee did not contravene s.269SS where the entire sale consideration of Rs.14 lakh was shown as paid before the registration authority; accordingly no penalty under s.271D could be imposed. Relying on earlier Tribunal precedents, the appeal was allowed and the penalty vacated.

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Assessee was penalized Rs. 14 lakhs under section 271D for allegedly accepting cash of Rs. 14 lakhs in breach of section 269SS during sale of immovable property. Assessee asserted the entire sale consideration was paid and recorded at registration before the Sub-Registrar and relied on Tribunal precedents (ITO vs. R. Dhinagharan (HUF), ITA No. 3329/Chny/2019, dated 28/12/2023; Katasani Thirupal Reddy vs. ITO, ITA No.372/Hyd/2023, dated 05/07/2024) holding that section 269SS does not extend to final payment at registration. Revenue maintained penalty. Tribunal followed the cited coordinate-bench decisions, found the sale deed showed full payment before registration, and held that there was "no violation of section 269SS of the Act" and consequently "no penalty could be levied U/s. 271D of the Act." Assessing Officer directed to delete the penalty; appeal allowed.

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