Latest - TMI e-Newsletter
New User/ Regiser
2022 (9) TMI 764 - Income Tax
Penalty imposed u/s 271D - violation of provisions of section 269SS - Information was received by the A.O. from JDIT (I&CI) with regard to the above receipt of cash by the assessee along with the sale deeds provided or not? - proof of reasonable cause as mandated u/s 273B - Whether assessee has not made out a case of reasonable cause as mandated u/s 273B for waiver of penalty? - HELD THAT:- The disposal of the property was also challenging due to the slump in the real estate market pursuant to the introduction of RERA and other factors. When the assessee’s father found a buyer, the assessee decided to fly down to Bangalore to complete the formalities. On the date of execution of sale deed, the cash was paid. Considering the age of father, the assessee accepted the cash and closed the deal once and for all.
The intention of the assessee was not to defraud the revenue by violating the provisions of the Act or by evading taxes. The same is evident from the fact that the cash receipts have been duly disclosed in the sale deed as well as the income tax returns. The copies of the sale deeds are enclosed in the paper book filed by the assessee. As mentioned earlier, due to paucity of time, the urgency and considering various factors that go into finalizing the transaction, the assessee was forced to accept cash to go ahead with the execution of the sale deed. The above facts clearly stipulated a 'reasonable cause’ as mandated u/s 273B for violation of the provisions of section 269SS.
There is 'reasonable cause’ as mandated u/s 273B on facts of the instant case. Hon’ble Jharkhand High Court in the case of OMEC Engineers [2007 (9) TMI 27 - HIGH COURT , JHARKHAND] had deleted the penalty by considering the urgency of the assessee to make payment, who had borrowed money in violation of provisions of section 269SS - Appeal of assessee allowed.