TaxTMI 
TaxTMI 
2024 (8) TMI 1137
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....n 12-01-2021. 3. The Ld. CIT(A) has erred in passing the appellate order confirming the Penalty order u/s 271D of the Act dated 28- 01-2022 without appreciating the fact that the Penalty so levied was barred by limitation of time. 4. The Ld. CIT(A) has erred in passing the appellate order confirming the Penalty order u/s 271D of the Act dated 28- 01-2022 placing reliance on the decision of the Honourable Kerala High Court in the case of Grihalakshmi vision vs. Addl. CIT in ITA No.83 and 86 of 2014 passed on 07-08- 2015 without appreciating the fact that the said decision was not applicable in view of the later other judicial decisions including the Honourable Apex Court decision. 5. The Ld. CIT(A) has erred in passing the appellate order confirming the Penalty order u/s 271D of the Act dated 28- 01-2022 without appreciating the fact that the Foundational satisfaction Note was not found mentioned in the assessment order dated 01-12-2019 as regards to contravention of Section 2695S. 6. The Ld. CIT(A) has erred in passing the appellate order confirming the Penalty order u/s 271D of the Act dated 28- 01-2022 without appreciating the fact that the all....
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....the returned income. Thereafter, a show cause notice u/s 274 r.w.s. 273D of the I.T. Act, 1961 dated 7.9.2021 was issued and served on the assessee and called the assessee to explain as to why penalty u/s 271D shall not be levied for contravention of section 269SS of the I.T. Act, 1961. In the said show cause notice, the Jt./Addl./Commissioner of Income Tax, observed that during the financial year relevant to A.Y 2017-18, the appellant has sold an immovable property for a sale consideration of Rs. 30.00 lakhs vide copy of sale deed No.3113/2016 dated 25/06/2016 and received the entire consideration in cash. As per provisions of section 269SS of the I.T. Act, 1961, no person shall take or accept any loan or deposit or 'specified sum' otherwise than by an account payee cheque or account payee draft or by use of electronic clearing system through bank account. For the purpose of this section, specified sum means any sum receivable whether as advance or otherwise in relation to transfer of an immovable property whether or not the transfer takes place. Therefore, the Assessing Officer opined that there is a contravention of provision of section 269SS of the I.T. Act, 1961 for accepting ....
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....nalty proceedings u/s 271D of the Act. The learned Counsel for the assessee further submitted that even the Assessing Officer who initiated penalty proceedings has not recorded satisfaction as required under law before initiating penalty. Therefore, the whole penalty proceedings become vitiate and liable to be quashed. The learned Counsel for the assessee further submitted that the consideration received towards sale of property cannot be considered as 'specified sum' as defined u/s 269SS of the I.T. Act, 1961 and thus, for the purpose of section 271D, said transaction cannot be considered as contravention of provisions of section 269SS of the Act. Therefore, he submitted that the penalty levied by the Assessing Officer should be deleted. 7. The learned DR, on the other hand, supporting the orders of the learned CIT (A) submitted that it is a clear case of contravention of provisions of section 269SS of the I.T. Act, 1961 which is evident from the consideration received in cash towards sale of property. Further, as per provisions of section 269SS of the I.T. Act, 1961, specified sum has been defined which include amount received towards advance or otherwise in relation to transf....
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....329/Chny/2019, dated 28/12/2023, wherein the ITAT took the view that the ' sum specified' as per Explanation to Sec on 269SS of the Act, only applicable for advance receivable, namely, 'as advance or otherwise' means advance can be in any manner, and therefore, this provision will not apply to the transaction that happens when the final payment at the me of registration of sale deed and payment takes place before sub-registrar for registration of property. Relevant part of para-No.12.1 of the decision of the ITAT is as under : "From the above provisions, Memorandum explaining the intention of amendment by Finance Bill, 2015 including the definition of 'sum specified' brought in the Explanation to Section 269SS of the Act, it is clear that the intention for bringing this provision was to curb the generation of black money in real estate prohibiting acceptance or repayment of advance in cash of Rs. 20,000/- or more for any transaction in immovable property. This was explained by Hon'ble Finance Minister while placing the Finance Bill, 2015 in her budget speech highlighting the intention of the amendment that the amendment in Explanation to Sec on ....