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

Cash transaction prohibition may apply to refundable lease advances under Sec 269SS, depending on the advance's character.
The statutory prohibition on cash payments may apply to a cash receipt for lease if the amount operates as a refundable deposit or loan-such as being refundable after three years or on lease expiry-making applicability a question of facts; the taxpayer's factual stance and supporting evidence will determine assessment and penalty exposure.