Sale purchase of immovable property for cash
This query is : Resolved
Raghav Mahajan
(Querist)
06 February 2020
Case study : Mr X sold his house to Mr Y for which he received payment by cheque (equal to circle rate) and balance in cash. Mr X deposited cash in bank for which he got notice from IT department to prove source of cash deposited. Mr X in his reply to IT department declared the cash deposited in bank as proceeds from sale of house and paid tax liability to on the same. Department now sent notice to Mr Y demanding the source of cash paid to Mr X. Mr Y denied payment of any cash to Mr X and no cash was withdrawn from Mr Y's bank account that could prove cash payment by Mr Y. What are the possible options left with IT department to prove cash paid by Mr Y is black money?
27 May 2020
Mr. X will be held liable for Cash Receipt which would be considered as Black Money until it is proved that Mt. Y has paid cash to Mr. X
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