Penalty under section 271D for violation of Section 269SS whether leviable on part of the consideration paid in Cash before registrar at the time of registration of the property

Facts:

Assessee sold an immovable property and since the buyer did not have sufficient balance in the bank, paid part of the sale consideration of Rs. 9.38 lakhs in cash before the registrar at the time of registration of the property. AO read this to be in violation of Section 269SS and thus levied penalty under section 271D on the said cash receipt. On higher appeal to ITAT the assessee's plea was Finance Act, 2017 had in fact inserted a new Section 269ST where any person received cash in excess of Rs. 2 lakhs even for purchase of property was liable to penalty under section 271DA. Since the AO has charged them under section 271D the penalty was not leviable as what was paid was not "Advance" as per Section 269SS in the first place as it was part of the sale consideration itself. 

Held in favour of the assessee that the penalty under section 271D was not leviable in this case.

Applied:

ITO v. Shri. R. Dhinagharan (HUF), [ITA No. 3329/Chny/2019, dt. 29-12-2023] : 2024 TaxPub(DT) 21 (Chen-Trib)

Case: Ramkumar Reddy Satty v. Asstt. CIT 2024 TaxPub(DT) 1485 (Hyd-Trib)