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Facts
The assessee filed an appeal against the order confirming a penalty levied under section 271D of the Income Tax Act. The penalty was imposed because the Assessing Officer (AO) assumed that the sale consideration for two properties, totaling ₹19,07,500/-, was received in cash, as cheque details were missing from the sale deed. The assessee contended that the amounts were received via RTGS.
Held
The Tribunal perused the bank statements and found that the assessee had received ₹14,07,500/- via RTGS from Pradeep Kumar Panigrahy and ₹5 lacs from Mr. Afroz Khan, totaling ₹19,07,500/-. This amount matched the sale consideration mentioned in the sale document. As the amounts were received through RTGS, it could not be treated as cash receipts.
Key Issues
Whether the penalty levied under section 271D is leviable when the sale consideration was received through RTGS and not in cash, despite the absence of cheque details in the sale deed.
Sections Cited
271D
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “CUTTACK” BENCH, CUTTACK
O R D E R PER PENCH:
This is an appeal filed by the assessee against the order of the ld. CIT (A), National Faceless Appeal Centre, Delhi in appeal no. ITBA/NFAC/S/250/2024-25/1074324173(1) dated 11.03.2025 for the A.Y. 2019-20, against the confirmation of penalty levied u/s 271D of the Act.
Shri SK Sarangi represented on behalf of the assessee and Shri Nishanth Rao P represented on behalf of the Revenue.
It was the submission that the assessee had sold two properties for a total consideration of ₹19,07,500/-. It was the submission that in the sale deed the cheque details were not mentioned and therefore, the ld. AO assumed that the sale consideration has been received in cash and penalty had been levied. It was submitted before the ld. AO that ” 04. And page 8 of the Paper Book which is the passbook extract of ICICI bank read as under: -
It was the submission that both the amounts have been received by RTGS and no penalty u/s 271D is leviable.
In reply, the ld. SR DR vehemently relied on the order of the ld. lower authorities. It was the submission that the breakup of ₹19,07,500/- is not clear. It was the submission that the sale deed mentions the amount of ₹10,43,873/- which is not seen anywhere in the bank passbook.
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 16.07.2025.