WHOLLY CASH TRANSACTION

Section 271DA  of the income tax act provides for the leavy of penalty on a person who receive a sum in contravention of the provisions of section 269ST  ( more than 2 lacs in cash ) , The penalty shall be equal  to the amount of such receipt , however the penalty shall not be levied if the person proves that there were good and sufficient  reasons for such contravention . In your case seller who receive money more than 2 lacs in cash is taxable .