applicability of Sec 269SS for rental lease/advance

[MOHAMED YACOOB SHARIFF]

Sir,

One of my client NRI, has let out his property for lease on receipt of Rs,500000/- in cash, now the assessing officer ask, you he has accepted the cash, and for this he says, the provisions of sec 269SS will apply, is it correct?

pl clarify with any recent case law, to give the reply and penalty

AI Summary

Non-resident Indian's cash advance on leased property challenged under Section 269SS of Income Tax Act. Compliance debated. A client, a non-resident Indian, leased out property and received a cash advance of 5,00,000. The assessing officer questioned the acceptance of cash, suggesting it violates Section 269SS of the Income Tax Act, which restricts cash transactions over a certain limit. The respondent indicated that the officer might be correct if the amount is refundable after three years or upon lease expiration. The nature of the transaction is crucial for determining compliance with the law. Further clarification or case law is sought to address potential penalties.