October 2025
Imposition of penalty for violation of provisions of section 269SS of the Act towards consideration received in cash for sale of agricultural land by bringing the said consideration within the ambit of “specified sum” as defined under section 269SS of the Act is totally incorrect and defeats the very purpose of law.
By Jagdish T Punjabi, Chartered Accountant Devendra Jain & Aditya Bhatt, Advocates
46. TS-1252-ITAT-2025 (Hyd.)
Late Nimmatoori Raja Babu vs. ACIT
A.Ys.: 2016-17 and 2017-18
Date of Order : 12.9.2025
Section: 271D
Imposition of penalty for violation of provisions of section 269SS of the Act towards consideration received in cash for sale of agricultural land by bringing the said consideration within the ambit of “specified sum” as defined under section 269SS of the Act is totally incorrect and defeats the very purpose of law.
Receipt in cash, of genuine sale consideration of immovable property including agricultural land, before witnesses at the time of registration cannot be brought within the ambit of “specified sum” merely because it has been received in cash.
FACTS
The Tribunal, in this case, was dealing with 3 appeals wherein levy of penalty under section 271D of the Act for AYs 2016-17 and 2017-18 amounting to ₹33,75,000; ₹2,59,35,760 and ₹2,14,35,760 was under challenge. The Tribunal took up appeal in the case of Late Nimmatoori Raja Babu for AY 2016-17 as the lead case.
The assessee, an individual, was one of the trustee of M/s Aurora Educational Society & Other Group Trusts. In the course of assessment proceedings, consequent to search, the Assessing Officer (AO) noticed that assessee received consideration for sale o
