Penalty for Cash Transaction in Property Sale Overturned Due to Reasonable Cause and Genuine Declaration of Capital Gains.

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....The ITAT Visakhapatnam dealt with a case involving penalty u/s. 271D for receiving cash in relation to the transfer of immovable property, which falls under section 269SS. The case was scrutinized under CASS to verify the source of cash deposits. Section 269SS prohibits receiving cash for immovable property transfers to curb black money. However, since the cash received was deposited into the bank account and capital gains were declared, it was deemed genuine. The explanation provided by the assessee constituted a "reasonable cause" u/s 273B, as the cash was accepted under unavoidable circumstances. The penalty imposed by the AO and upheld by the CIT(A) was deemed unsustainable in law, leading to the penalty being deleted. The assessee's appeal was allowed.....