TaxTMI 
TaxTMI 
2026 (3) TMI 133
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....plication is delineated below:- "It is therefore, most respectfully prayed that this Hon'ble Court may kindly be pleased to quash the charge-sheet dated 4-8-2025, cognizance dated 7-10-2025 and entire proceeding, pending in the Court of Learned chief Judicial Magistrate Saharanpur, State V/s Nikhil Mittal, in case No. 10941 of 2025 case crime No.267 of 2024, Under Section 420, 467, 468,471,506, IPC Police Station- Sadar Bazar District- Saharanpur, so for as applicant is concerned, in the interest of justice." 4. Learned counsel for the applicant submits that Section 269ST of the Income Tax Act, 1961 prohibits any person from receiving Rs.2,00,000/- or more in cash from a single person in a day or in a single transaction or i....
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....nt if any cash payment of Rs.2,00,000/- or more is involved. The relevant paragraph No. 18.1 is delineated below for ready reference: "18.1. Further, through the averments made in the plaint and in the agreement, the respondents/plaintiffs have claimed to have paid huge sum towards consideration by cash. It is pertinent to recall that Section 269ST of the Income Tax Act, was introduced to curb black money by digitalising the transactions above Rs.2,00,000/- and contemplating equal amount of penalty under Section 271DA of the Act. As per the said provisions, action is to be taken on the recipient. However, there is also an onus on the plaintiffs to disclose their source for such huge cash. The Central Government thought it fit to ca....
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.... money is generally transacted in cash and large amount of unaccounted wealth is stored and used in form of cash. In order to achieve the mission of the Government to move towards a less cash economy to reduce generation and circulation of black money, it is proposed to insert section 269ST in the Act to provide that no person shall receive an amount of three lakh rupees or more,- (a) in aggregate from a person in a day; (b) in respect of a single transaction; or (c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account. It is further proposed to ....
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.... create a suspicion on the transaction, but also displays, a violation of law. Though the amendment has come into effect from 01.04.2017, we find from the present litigation that the same has not brought the desired change. When there is a law in place, the same has to be enforced. Most times, such transactions go unnoticed or not brought to the knowledge of the income tax authorities. It is settled position that ignorance in fact is excusable but not the ignorance in law. Therefore, we deem it necessary to issue the following directions: (A) Whenever, a suit is filed with a claim that Rs. 2,00,000/- and above is paid by cash towards any transaction, the courts must intimate the same to the jurisdictional Income Tax Department to v....