TaxTMI 
TaxTMI 
2026 (8) TMI 1724
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....1961 (hereinafter referred to as the "Act") confirming the levy of penalty under section 271D of the Act and relates to Assessment Year (A.Y.) 2021-22. 2. The assessee has challenged the appellate order in the following ground: (1) NFAC has erred in confirming the levy of penalty of Rs.15,97,906/- u/s 271D of the Act. 3. Brief facts of the case are as under: The assessee and other several other persons including person from his family had sold the property to M/s. Shiv Construction for total consideration of Rs. 27,90,00,000/-. The assessee had 1/48th share in the said property and the assessee's share of the sale consideration was reported as Rs. 58,12,500/- based on which the assessee computed Long Term Capital Gain of R....
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....see Shri Jagdish C. Tamboli and narrated the facts related to his case. However, subsequently, the Ld. CIT(A) in the appellate order has reproduced the contentions of the assessee in the present appeal and the confirmed the levy of penalty of Rs. 15,97,906/-. 7. The Ld. A.R. Shri Mehul K. Patel summarized the contentions raised by the assessee before the lower authorities which are as under; "1. Fragmented Family: The joint owners of the land were part of the family which consisted of descendants of six brothers, most of whom were adults and had their individual family interests in mind. (2) The education of the assessee family: From the chart, you will appreciate that largely the family members had a very minimal educa....
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....st the owners resulted because of the delay in the sale of the property, the lack of an adequate number of buyers also added to the dissatisfaction amongst the owners. (9) Reasonable Cause. All the above factors along with the fact that there is no evasion of tax in the transaction constitute a valid reasonable cause and ignorance of the law and no loss to the revenue with minimal education, failing health of the ageing members of the family needs to be considered as "Reasonable Cause as contemplated by Section 2738 of the Act. (10) There is no loss to the Revenue as each member of the family has disclosed the entire consideration in the updated returns filed. The purpose for which the section was introduced was to curb bl....
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....ble circumstances. The lack of awareness of statutory provisions, on the consequence of receipt of part of the sale consideration in cash, caused the assessee to accept the cash. In any case they had modified the return and included, the amount shown in the sale deed and the consideration received in cash, in the returns filed u/s. 139(8A) even before any action was initiated by the Department u/s. 147. The Counsel in that case had also pointed out that in the case of another co-owner, namely Jayaben Ramanlal Tamboli, the A.O. had accepted the explanations offered by the assessee and drop the penalty proceedings u/s. 271D of the Act. 10. In reply, Ld. Sr. D.R. Smt. Deeba Farhat defended the levy of penalty on the ground that receipt of c....
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....g the sale consideration of Rs. 31,95,813/- in cash in violation of provision of Section 269SS of the Act. The Ld. CIT(A) confirmed the penalty so levied by the AO. 4. Before us, at the outset, Ld. Counsel for the assessee submitted that it was duly explained before the lower authorities that the assessee and his family members were agriculturists and were not aware of the relevant provisions of the Act prohibiting acceptance of sale consideration in cash. It was further explained that the assessee and his family members were in dire need of funds, therefore, they collectively decided to sell their ancestral property. The purchasers were willing to purchase the property only if, the assessee and his family members would accept part....