TaxTMI 
TaxTMI 
TaxTMI 
2025 (3) TMI 1516
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....turn of income of AY 2017-18 was filed on 29.03.2018 declaring total income of Rs. 1,42,860/-. Against the said return of income, the assessment was completed by the by the Income Tax Officer, Ward - 1 & TPS, Palakkads (hereinafter called "the AO") vide order dated 10.10.2019 passed u/s. 143(3) of the Act accepting the returned income. 3. During the course of assessment proceedings, the AO noticed that the appellant had violated provisions of section 269SS of the Act by accepting sale consideration of Rs. 17,50,000/- in cash against sale of residential property on 29.06.2016. Accordingly, the matter was referred to the Jt. Commissioner of Income Tax, who issued show a cause notice dated 25.10.2019, to the appellant. In response to the show....
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.... submitted that the penalty proceedings were initiated by the JCIT as the show cause notice was issued by him. In this connection she also placed reliance on the decision of the Hon'ble Jurisdictional High Court in the case of Grihalakshmi Vision v. Addl. CIT [2015] 379 ITR 100. Further, she submits that there is a clear violation of provisions of section 269SS of the Act. In the absence of any reasonable cause for violation of provisions of section 269SS, the penalty is exigible, no interference in the orders of the lower authorities is called for. 8. We have heard the rival contentions of both the parties and perused the material available on record. Admittedly, in the present case the appellant had received sale consideration on sal....
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....se (iv) to Explanation to section 269SS and amendment of clause (a) of section 269SS in order to curb generation of black money by dealing in cash in immovable property transactions. The CBDT has elaborated the amendment vide circular No. 19 of 2015 dated 27.11.2015 as follows: - "54. Mode of taking or accepting certain loans, deposits and specified sums and mode of repayment of loans or deposits and specified advances - 54.1 Provisions contained in section 269-SS of the Income-tax Act, before amendment by the Act, provided that no person shall take from any person any loan or deposit otherwise than by an account payee cheque or account payee bank draft or online transfer through a bank account, if the amount of such loan or deposit is tw....
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....an any sum of money in the nature of an advance, by whatever name called, in relation to transfer of an immovable property whether or not the transfer takes place. 54.5 Consequential amendments in section 271D and section 271E, to provide penalty for failure to comply with the amended provisions of sections 269-SS and 269T, respectively, have also been made. 54.6 Applicability: - These amendments have taken effect from 1-6-2015." 9. As a result of the amended provisions of section 269SS, no person shall take or accept from other persons loans or deposits or any specified sum if the aggregate of the amount of such loan, deposit or specified sum exceeds Rs. 20,000/- otherwise by an account payee cheque or account payee bank draft or otherw....
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....ject to proving the existence of reasonable cause to the satisfaction of the Jt. Commissioner of Income Tax. In the present assessee the appellant had not took the plea of reasonable cause for non-levy of penalty. The only plea took by the learned counsel for the assessee is that there is no violation of provisions of section 269SS, as according to him the receipt of sale consideration in cash does not fall within the ambit of advance so as to attract clause (iv) of Explanation to section 269SS of the Act. She also placed reliance on the decision of the coordinate bench of the Tribunal in the case of Bhaskar Thattaruthodiyil (supra). 10. In our considered opinion the decision of the coordinate bench have failed to interpret the words "or o....