ASSISTANT COMMISSIONER OF INCOME TAX, LUCKNOW vs. KNS MEMORIAL, VIKAS KHAND-II, GOMTI NAGAR

ITA 572/LKW/2024Status: DisposedITAT Lucknow26 February 2026AY 2018-197 pages
AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) deleted the penalty, finding that separate bills were issued for distinct medical services, none of which exceeded Rs. 2,00,000. The Tribunal upheld the CIT(A)'s decision, clarifying that a patient's admission and treatment do not automatically constitute a single 'event' or 'occasion' under section 269ST, especially when services are billed individually rather than as a composite package. Since no single transaction exceeded the prescribed cash limit, the penalty under section 271DA was not leviable.

What were the facts?

The assessee, a nursing home (KNS Memorial), received cash payments exceeding Rs. 2,00,000 against 51 bills/transactions in FY 2017-18, totaling Rs. 1,43,01,202. The Assessing Officer (AO) levied a penalty of Rs. 1,43,01,202 under section 271DA for contravening section 269ST, by treating the total medical expenses for each patient as a single transaction. The assessee argued that separate bills were issued for different medical services, and no single bill exceeded the Rs. 2,00,000 cash receipt limit.

What were the issues?

Whether separate billings for various medical services provided to a single patient should be considered individual transactions or a single composite transaction for the purpose of cash receipt restrictions under Section 269ST of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 269ST,Section 271DA,Section 285BA(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, LUCKNOW ‘B’ BENCH, LUCKNOW

Hearing: 18.12.2025Pronounced: 26.02.2026

PER NIKHIL CHOUDHARY, A.M.: This is an appeal filed by the Revenue against the orders of the ld. CIT(A), NFAC, dated 18.07.2024, wherein the ld. CIT(A) has deleted the penalty levied by the Assessing Officer under section 271DA vide his order dated 8.03.2019 for the A.Y. 2018-19. The grounds of appeal are as under:- “1. The Ld. CIT(A) erred by facts and law by deleting the Penalty of Rs. 1,43,01,202/- as receiving of cash exceeding Rs. 2,00,000 against a single bill constitutes a violation of the provisions of section 269ST of the Income Tax Act, 1961 as no person shall receive an amount of two lakh rupees or more in aggregate from a person in a day, or in respect of a single transaction or in respect of transaction relatin

The order continues below.

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