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TMI Blog2024 (3) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee is a Book Maker of Hyderabad Race Club. During the year under consideration the assessee sold a property for a consideration of Rs. 39,38,000/- vide registered sale deed dated 12/07/2017, out of which, an amount of Rs. 9,38,000/- was received in cash. Hence the learned Assessing Officer passed an order dated 16/03/2022 under section 271D of the Income Tax Act, 1961 ('the Act') by levying penalty of Rs. 9,38,000/-. 3. Aggrieved, assessee preferred appeal before the learned CIT(A), and pleaded that the cash of Rs. 9.38 lakhs was received from the purchaser on the day of registration and before the Jt. Sub Registrar only, since the purchaser did not have sufficient bank balance and hence had to pay such sum in cash, which was accepted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed of an equivalent to the amount under section 271DA of the Act, which was also simultaneously introduced by the Finance Act, 2017 w.e.f. 01/04/2017. Hence, according to learned AR, this provision of 'specified sum' introduced w.e.f. 01/06/2015 does not hit the assessee's transaction, because on facts, the assessee has not received the amount of cash of Rs. 9,38,000/- as advance, but he received the same in front of the sub-registrar at the time of registration for sale of property. For this, he produced a copy of the registered sale deed for verification, which was not denied by the Learned assessing officer. 5. Per contra, learned DR placed heavy reliance on the orders of the authorities below and submitted that the sale considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the time of registration of sale deed and payment takes place before sub-registrar for registration of property. Relevant part of para No.12.1 of the decision of the ITAT is as under : "From the above provisions, Memorandum explaining the intention of amendment by Finance Bill, 2015 including the definition of 'sum specified' brought in the Explanation to Section 269SS of the Act, it is clear that the intention for bringing this provision was to curb the generation of black money in real estate prohibiting acceptance or repayment of advance in cash of Rs. 20,000/- or more for any transaction in immovable property. This was explained by Hon'ble Finance Minister while placing the Finance Bill, 2015 in her budget speech highlighting t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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