SAI SAMARPAN REALTORS PVT LTD,DELHI vs. JCIT CENTRAL RANGE-1, DELHI

ITA 5865/DEL/2024Status: DisposedITAT Delhi22 August 2025AY 2019-20Bench: MS. MADHUMITA ROY (Judicial Member), SHRI NAVEEN CHANDRA (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the assessee acted as a mere facilitator and was not the recipient of the money in real sense, nor the beneficiary. There was a genuine and bonafide belief that their actions were not in contravention of Section 269SS, and further, a reasonable cause was established under Section 273B.

What were the facts?

A search operation led to an agreement for sale of property, and based on this, a notice under Section 153C r.w.s. 153A was issued. The assessee, a private limited company, acted as a facilitator for an advance payment received from M/s Kritunairu Builders & Developers Private Limited. Penalty proceedings under Section 271D for alleged violation of Section 269SS were initiated.

What were the issues?

Whether penalty under Section 271D for violation of Section 269SS is leviable on an intermediary facilitator who is not the beneficiary and has a reasonable cause? Whether the Co-ordinate Bench's decision on quantum addition applies to the penalty proceedings?

Which sections of the Income-tax Act were involved?

Section 271D,Section 269SS,Section 153C,Section 153A,Section 273B

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, DELHI BENCH‘G’: NEW DELHI

Before: MS. MADHUMITA ROY & SHRI NAVEEN CHANDRA

For Appellant: Ms. Vaishnavi Yadav, Advs
Hearing: 11.08.2025Pronounced: 22.08.2025

PER MADHUMITA ROY, JM: Both the appeals filed by the assessee are directed against the ordersboth dated 04.12.2024 passed by the Ld. Commissioner of Income Tax (Appeals)-25, Delhi [hereinafter referred to as ‘the Ld. CIT(A)’] arising out of the assessment orders passed under section271Dof the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for Assessment Years 2019-20 and 2020-21. Sai Samarpan Realtors Pvt. Ltd. vs. DCIT

2.

Since, the issues involved in both the appeals are common, therefore, these are heard analogously and are being disposed of by a common order. We first take up the appeal in ITA No.5865/D

The order continues below.

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