Supreme Court has directed that high-value cash transactions must be reported to the IT Department.
Now the question is: Who will report to the IT Department if you caught dealing in cash transactions?
Case -
A property dealer involved ₹1 crore via bank and ₹50 lakh in cash; dispute over the cash led to litigation.
Supreme Court Questioned -
- How can so much cash handed over?
- How is it accepted, despite clear prohibitions under IT laws?
As section 269ST prohibits cash transactions exceeding ₹2 lakhs.
Supreme Court’s Directions to Courts and Registries
- When a case involves a claim that cash above ₹2 lakh was given, courts must immediately report to the jurisdictional Income Tax Department.
- The IT Department will then verify the cash transaction and investigate violations under Section 269ST.
- When a property document is presented for registration showing cash above Rs.2 lakh:
- The Registrar must report it to the IT Department.
- Failing to do so can lead to disciplinary action against the Registrar.
- If any registry office fails to report such transactions, the matter will be escalated to the Chief Secretary of the State/UT for further disciplinary action.
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