Cash Transaction

There is no impact on IT. you can show as advance given and taken back in books.......Try to show small cash entries.....both sides....

Dear Sir,

Considering the amount in excess of Rs. 20,000 - Property Dealer has committed default as under -

1) u/s 269 SS - at the time of accepting

2) u/s 269 T - at the time of repayment

Tax Auditor needs to qualify Form 3CD

As a result penalty equivalent to 100% Loan/Advance shall be levied u/s 271D & 271E respectively

No consequences on part of Real Estate Company.

Originally posted by : Shivang
	There is no impact on IT. you can show as advance given and taken back in books.......Try to show small cash entries.....both sides....

i agree

There is no expense booked in books which can be disallowed.. so not to worry for that...

and sicne its a cash transaction, show in part part amount..... and amount settled in the same yeat... No disclosure required at the end of year also....

Dear Friends,

With due respect I would like to draw ur attention to this case law -

Scope of the term ‘any deposit’ - The words ‘any deposit’ in section 269T have been used to cover all sorts of deposits and include ‘trade deposit’ also - Chaubey Overseas Corpn. v. CIT [2008] 170 Taxman 9/303 ITR 9 (All.).

https://www.thehindubusinessline.com/2008/08/16/stories/2008081650430900.htm

Will u still go with ur original post?

I agree to you Amir,

thts why i am saying to show in parts parts,,, Since its a cash transactions, we can change the dates and all... just to save from penalty....and pls tell what the huge amount means....

whats the quantum of cash deposit....  if  turnover is not so high than chances of assessment will be every less.

I agree with Amir comments. As both payment and receipt  made in cash, therfore transaction can be nullified mutually in both parties books to avoid any further consequences.

Dera Shivang Sir,

Pls refer the initial paras of the above link- Penalty cannot be escaped even if u break this transactions in parts.......

Amir,

Agree to u...

Now depends upton the AO to have penalty or not..

Thanks.....

Question: From where you got such a huge amount of cash?

If you have withdrawn it from bank then deposit it back There will be no problem in Income tax as same amount has withdrawn and redeposited.

If you have got it from other sources not disclosed in accounts then keep it undisclosed.

Well I agree with Amir as regards the qualification by tax auditor u/s 269ss And Section 269T

Also to escape the penalty and other hassles from department follow Faiz advice. It is better to keep it undisclosed if possible.

regards

CA Rohit Gupta