Cash payment for land purchase

Rohit Tulshyan (RTProfessionals) (333 Points)

10 September 2012  

Hey,

      Their are two parties

one- an individual with tax audit applicable having pan no and every legal requirement.

two- an individual with no pan and no books of account. In other words a farmer.

        now "one" is selling land to "two". now he can accept  cash  suppose around 15 lacks from "two" but than the deal was cancelled. now can he repay cash worth rs 15 lakh in cash like instead of paying through cheque. Is ia allowed under the income tax act or if he pays back in cash that amount is will be added back to his income. 

What are your views in this.

Thank you.