Penalty applicable sec 269t provision in it act

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This discussion clarifies the applicability of Section 269T and 271E penalties in the Income Tax Act concerning cash payments for agricultural land. While the amendment effective from June 1, 2015, restricts cash transactions over £20,000 for immovable property, the purchase in question occurred in FY 2014-15. Therefore, the penalty under Section 271E is argued to be not applicable as the transaction predates the amendment.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

30 March 2022 Sir,
It assessee purchase of agriculture land rs:5 lacs pay amount through on cash mode in f.y.14-15.
Question:
Assessess sec 269t violation provision in it act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

31 March 2022 No violation in such a case.

Income-tax Act is amended with effect from 01.06.2015 to provide that no person shall accept from any person any loan or deposit or any sum of money, whether as advance or otherwise, in relation to transfer of an immovable property otherwise than by an account payee cheque or account payee bank draft or by electronic clearing system through a bank account, if the amount of such loan or deposit or such specified sum is twenty thousand rupees or more.

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Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)

31 March 2022 sir, assessee it returns filed sec 44ab audit and sec 271e penalty applicable in it act show in notice.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 April 2022 Reply to the notice penalty not applicable.

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