2024 (7) TMI 1717

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..... 271DA of the Act for violation of the provisions of Section 269ST of the Act. Ld. JCIT has initiated the penalty proceedings u/s. 271DA of the Act by issuing a show cause notice dated 01.10.2021 and thereafter levied the penalty of Rs. 5,00,000/- vide impugned order dated 27.04.2022. In first appeal, the ld. CIT (A) has confirmed the said penalty, therefore, the assessee is before us in the present appeal. 3. During the course of arguments, ld. AR of the assessee submitted that the assessee had received more than 90% of the consideration through banking channel and only one occasion i.e. on 10.07.2017 the buyer approached the assessee with a sum of Rs. 5 lakhs and it was stated by them that since they were coming from outstat....

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....n of the assessee to violate the provisions of the Act. The provisions of Section 271DA of the Act are as under :- 271DA. Penalty for failure to comply with provisions of section 269ST (1) If a person receives any sum in contravention of the provisions of section-269ST, he shall be liable to pay, by way of penalty, a sum equal to the amount of such receipt: Provided that no penalty shall be imposable if such person proves that there were good and sufficient reasons for the contravention. 6. From the perusal of the proviso to Section 271DA(1) of the Act, it prescribes that if the assessee satisfied that there was good and sufficient reason for contravention of the provisions of Section 269ST, no penalty is levia....

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.... "Specified sum" means any sum of money receivable, whether as advance or otherwise, in relation to transfer of an immovable property, whether or not the transfer takes place." 5. From the plain reading of the above section, it is noted that any person is barred from receiving from any amount otherwise by cheque or through banking channels in relation to transfer of the immovable property. Section 269SS of the Act prohibits receipt of any amount by way of cash in relation to the transfer of any immovable property. The Memorandum explaining the provisions of Finance Bill 2015 with respect to amendment proposed w.e.f 1/6/2015 in section 269SS is reproduced below: "In order to curb generation of black money by way of dealings....