TaxTMI 
TaxTMI 
2026 (3) TMI 1603
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....tion 271D of the Income Tax Act, 1961 [hereinafter referred as 'the Act']. 2. The assessee has raised the following grounds of appeal: 1. That the penalty order passed by the Assessing officer u/s 271D of the I. Tax Act, 1961 as upheld by the Ld. CIT(A), was perverse to the law and to the facts of the case therefore not tenable, as not in consonance of the provisions of law contained u/s 269SS Explanation -(iv) of the Income Tax Act,1961. 2.That the penalty order passed as has been upheld by the Ld. CIT(A), was further incorrect under the law and to the facts of the case, because no satisfaction if any has ever been recorded by the Assessing Officer prior to recommend the case to the Addl. CIT for the levy of penalty u/....
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.... However, the Assessing Officer has noticed that assessee had sold an immovable property in Sadar Bazar Delhi to Shri Ajay Kumar for sale consideration of Rs. 8,20,000/- which was received in cash. Accordingly, penalty proceedings was initiated by issuing notice u/s 274 read with section 271D of the Act on 01-05-2019. The Assessing officer levied the penalty of Rs. 4,10,000/-u/s 271D of the Act. According to AO the assessee had executed the sale deed through GPA which was executed about five years back from the execution of the sale deed. The sale deed was executed through GPA to save the stamp duty. Aggrieved by the order of the AO the assessee filed the appeal before the NFAC, who vide his order dated 21-08-2025 dismissed the appeal again....
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....wise, in relation to transfer of an immovable property (specified sum) otherwise than by an account payee cheque or account payee bank draft or by electronic clearing system through a bank account, if the amount of such loan or deposit or such specified sum is twenty thousand rupees or more. 54.4 Section 269T of the Income-tax Act has also been amended to provide that no person shall repay any loan or deposit made with it or any specified advance received by it, otherwise than by an account payee cheque or account payee bank draft or by electronic clearing system through a bank account, if the amount or aggregate amount of loans or deposits or specified advances is twenty thousand rupees or more. The specified advance shall mean an....
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....before us, it is an admitted fact that all sale deeds were registered and cash payment was made at one go before the sub- registrar at the time of registration of sale deeds of plots. Hence, in our view, there is no violation of provisions of section 269SS of the Act in the present case in the given facts and circumstances of the case and hence, penalty is not exigible in this case." 11. Respectfully, following the observation of the Chennai Bench, in the case of R. Dhinagharan (HUF) (supra), we are also of the opinion that when cash is being received in one lump sum, against sale of immovable property, before the Government Registration authority, the sale deed being duly registered before him under his stamp and signature, there ....
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....nsideration in cash in respect of selling the immovable properties. In our consideration view, considering the facts and circumstances of the case, the Ld. Assessing Officer has committed error in invoking the provisions of section 269SSr.w.s.271 D of the Act and imposing the penalty. Accordingly, we delete the penalty imposed by the Assessing Officer which has been confirmed by the Ld.CIT(A). In the result appeal of the Assessee is allowed. 5. The Ld. Sr. DR relied the orders of the lower authorities. He submitted that half of the consideration amount of Rs. 8,20,000/- has been received by the General Power holder at the time of sale of property, in cash by the assessee. He further submitted that penalty was rightly imposed by ....