TaxTMI 
TaxTMI 
2025 (3) TMI 1822
X X X X Extracts X X X X
X X X X Extracts X X X X
....the I.T. Act, 1961 for the A.Y.2016-17. 2. The Revenue has raised the follow: 1. The Learned CIT(A) ought to have appreciated the fact that the case law relied on by the CIT(A) i.e., Apex Court decision in the case of Commissioner of Income Tax, Panchkula Vs. Jai Laxmi Rice Mills, Ambala City (2015) 64 taxmann.com 75 (SC) is distinguishable to the facts of the instant case on hand. 2. The Learned CIT(A) erred in deleting the penalty on the ground that the A.O. has not recorded the satisfaction in the Assessment Order u/s 143(3) of the I.T. Act for the reason that the JCIT is the appropriate authority for initiating as well as levying the penalty u/s 271D of the I.T. Act. 3. The Learned CIT(A) ought to have appr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e learned AR of the assessee has submitted that the amount, in question, was received by the assessee by way of refund of advance amount on cancellation of agreement. Therefore, this amount was received as the advance earlier given by the assessee and therefore, does not partake the character of loan or deposit or any specified sum received by the assessee as provided u/s 269SS of the I.T. Act, 1961. The learned AR has submitted that though the amount was received in cash but this was only an advance earlier given by the assessee being received back on cancellation of the agreement. He has referred to the provisions of section 269SS of the Act and submitted that the said provision is attracted only in respect of the transactions in the natu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....account. In view of this, the assessee has contravened the provision of section 269SS of the I.T. Act and warranting penalty u/s 271D of the I.T. Act." 8. The Assessing Officer has again repeated this fact in para No.3 while giving description of issue as under: "3. Analysis of issues involved (issue wise): Description of issue: The assessee had received an amount of Rs. 87.09,680/- by way of cash towards advance amount got on cancellation of agreements. As per provisions of section 269SS of the I.T. Act no persons shall take or accept any loan or deposit or any specified sum otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account. In vie....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... or accepting such loan or deposit or specified sum, any loan or deposit or specified sum taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), the amount or the aggregate amount remaining unpaid; or (c) the amount or the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more: Provided that the provisions of this section shall not apply to any loan or deposit or specified sum taken or accepted from, or any loan or deposit or specified sum taken or accepted by, (a) the Government; (b) any banking company, post office savings bank or cooperati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Therefore, this provision is attracted in respect of the transactions of acceptance of loan or deposits or any specified sum of Rs. 20,000/- or more. Since in the case in hand, the assessee received this amount as refund of advance paid by the assessee for purchase of some property and therefore, the same does not fall in the category of loan of deposit as provided u/s 269SS of the Act. As regards the specified sum, the same is defined in clause (iv) of Explanation to section 269SS of the Act reproduced herein above which means any sum of money receivable whether as an advance or otherwise in relation towards transfer of an immovable property whether or not the transfer takes place. Therefore, the specified sum must be receivable either as ....