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TMI Blog2025 (5) TMI 1579X X X X Extracts X X X X X X X X Extracts X X X X ..... eight of evidence, natural justice and probabilities on the facts and circumstances of the Appellant's case. 2. The impugned penalty order passed under section 271D of the Act is without jurisdiction on the facts and circumstances of the case. 3. The impugned penalty order passed under section 271D of the Act is non est, bad in law and barred by limitation on the facts and circumstances of the case. 4. The learned CIT(A) failed to appreciate that the rigours of section 271D r.w.s. 269SS of the Act is not applicable to the facts and circumstances of the case. 5, The learned CIT(A) erred in giving a perverse fact finding on the facts and circumstances of the case. 6. The learned CIT(A) erred in law and on facts in upholding the findings of the Assessing Officer and the imposition penalty under section 271D of the Act amounting to Rs. 7,00,000/- on the facts and circumstances of the case. 7. The authorities below erred in law and on facts in holding that a Sale Agreement must be registered to be valid on the facts and circumstances of the case. 8. Without prejudice, if the Sale Agreement were to be held as invalid, then the cash received at the time of registration wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cified sum' as it was brought into Act only w.e.f. 1.6.2015 and therefore penalty u/s. 271D is not attracted. 7. The ld. AO asked the assessee to furnish the registered copy of agreement of sale along with receipt of cash of Rs. 7 lakhs along with the bank statement where Rs. 7 lakhs is deposited. The assessee contended that copy of the agreement of sale is already provided, but the same is not registered. It was also submitted that there is no requirement of registration of agreement to sell. The receipt of Rs. 7 lakhs is already acknowledged in the agreement to sell and further the amount of Rs. 7 lakhs received from the buyer is not deposited into bank account, but is partly used in the business of assessee and partly for renovation of the house. 8. The ld. AO after considering the explanation of the assessee held that agreement to sale is a non-registered document which is required to be registered u/s. 17 of the Registration Act, 1908 and as the same is unregistered, according to the provisions of section 49 of that Act, it is legally not enforceable. Therefore, that agreement was not considered. Further in the sale deed also, the ld. AO noted that there is no mention of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of the appeal. The ld. CIT(Appeals) has wrongly taken the date of 26.3.2024 and therefore held that there is a delay. But in fact, there is no delay in filing of appeal. On merits of the case, it was submitted that as per agreement for sale executed between the assessee and the buyer, where the sum of Rs. 7 lakhs was received on 31.1.2015. On that date, there is no prohibition of law wherein the assessee could not have accepted cash from the buyer. He submitted that the amendment to the provisions of law is w.e.f. 1.6.2015 and as the impugned sum of Rs. 7 lakhs is received prior to that, provisions of section 269SS cannot apply. He further submitted that whether the agreement to sale is registered or not is irrelevant so far as the fact of receipt of 7 lakhs is concerned. It was submitted that provisions of section 49 is with respect to the rights of the immovable property and cannot be considered as evidence of transaction affecting such property. In this case, same is paid by the buyer who has not denied this and sum is received by the assessee who has received the sale consideration and there is no question of not accepting that sum was received on 31.1.2015. In the sale dee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 31.5.2016. In both these documents it is mentioned that assessee has received 7 lakhs in cash from the buyer of the property. The date of agreement of sale is prior to 1st day of June, 2015 i.e. on the date on which definition of specified sum provided in section 269SS of the Act is introduced. Further sale deed is post 1/6/2015. Therefore, as on the date of executing the agreement to sale there was no prohibition in law against accepting cash on sale of property as Such amendment was brought into statute on 1.6.2015 only. 16. The Revenue has not considered the agreement to sale dated 31/1/2015 as this agreement is not registered. Revenue authorities have held that unregistered agreement does not have any enforceability. What are the advantages of registration is described by Honourable supreme court in Suraj Lamp and Industries (P) Ltd. through. DIR vs. State of Haryana and Anr. (15.05.2009 - SC) AIR 2009 SC 3077(2009) 7 SCC 363 as under: - "Advantages of registration 15. In the earlier order dated 15-5-2009 [ MANU/SC/1021/2009 : 2009:INSC:818 : (2009) 7 SCC 363 : (2009) 3 SCC (Civ) 126], the objects and benefits of registration were explained and we extract them for read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " Thus only purpose of registration is that Registration of documents makes the process of verification and certification of title easier and simpler. It reduces disputes and litigations to a large extent as held by Honourable supreme court in M.S. Ananthamurthy and Ors. vs. J. Manjula and Ors. (27.02.2025 - SC) : MANU/SC/0269/2025. 17. Provision of section 49 of the Registration act provides that 49. Effect of non-registration of documents required to be registered. No document required by section 17 [or by any provision of the Transfer of Property Act, 1882 (4 of 1882)], to be registered shall (a) affect any immovable property comprised therein, or (b) confer any power to adopt, or (c) be received as evidence of any transaction affecting such property or conferring such power, unless it has been registered: [Provided that an unregistered document affecting immovable property and required by this Act or the Transfer of Property Act, 1882 (4 of 1882), to be registered may be received as evidence of a contract in a suit for specific performance under Chapter II of the Specific Relief Act, 1877 (3 of 1877) *** or as evidence of any collateral transaction not required to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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