TMI Blog2018 (11) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... d principle applicable to income tax that entry in the books of account on description and treatment is not decisive as to the nature of the transaction as held in Kedarnath Jute Mfg. Co. Ltd. Vs. CIT [1971 (8) TMI 10 - SUPREME COURT]. Clearly Section 269SS does not apply to every transaction. Therefore Section 269ST of the Act was enacted by Finance Act, 2017 w.e.f. 01.04.2017. This section postulates that no person shall receive an amount of ₹ 2,00,000/- or more in aggregate in cash from any person in respect of a single transaction or in respect of transactions relating to one event or occasion, otherwise than by way of account payee cheque, account payee bank draft or by way of electronic clearing system through a bank account. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 269SS of the Act. Accordingly, penalty of ₹ 83,00,000/- was imposed under Section 271D of the Act. 5. The penalty was, however, deleted by the Commissioner of Income Tax (Appeals) vide order dated 25.10.2013, who held that the payment pursuant to the MoU was to develop an integrated township in Rudra Pur (Uttarakhand). The respondent-assessee was to purchase the land and develop the same in association with M/s Saamag Construction Ltd. Latter was responsible for arranging finance for the project. Accordingly, M/s Saamag Construction Ltd. had provided funds on different dates. ₹ 53,21,800/- was used to pay sale consideration to farmers/land owners and ₹ 28,54,400/- was for payment of stamp duty. Further, the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mp duty. The contention of the assessee that it could not comply with the requirement of section 269SS due to reasonable failure on its part, has also been considered by us. The argument of the Ld. counsel is justified to some extent as it is generally known that while purchase of land, farmers accepted sometimes by stamp duty authorities. In our opinion, it constitutes a reasonable cause for not adhering to the provisions of section 269SS by the assessee. 7. Learned counsel for the respondent-assessee has drawn our attention to the MoU dated 02.06.2006 and submits that the respondent-assessee was obligated to purchase land in its own name and develop the same in association with M/s Saamag Construction Ltd. 8. The MoU however also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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