| Question And Answer | |
|---|---|
| Subject: | Sale of Rural agriculture land |
| Category: | Income-Tax |
| Querist: | CA Ankush |
| Answered by: | Mr .Ganesh Purohit |
| Tags: | 269SS, cash received, Sale of Agricultural land |
| Date: | September 28, 2024 |
The assessee sold a rural agriculture land in PY 2019-20 and the same was not shown in original ITR and now reassessment is going on. The assessee had receieved Rs. 37.5 lacs in cash and remaining payment through cheque. The assessee had given statement on oath u/s 131A that he had received cash of Rs. 37.5 lacs also the agreement of cash sale was available with department. Whether penalty under section 269SS will be levied on sale of such rural agricultural land ?
Secondly, whether ITR can be filed in response to 148 notice beyond 90 days and can we show in the said ITR the entire receipt (both cash and bank receipts) on sale of rural agriculture land in order to avoid penal consequences u/s 269SS (if any)
In reply to question No. 7 it is the question asked that can the penalty under section 271D can be saved or avoided, In this respect it may be pointed out that there is violation of section 269SS that prohibits accepting of specified sum, cash of more than Rs.20000/- in immovable property transaction. The penalty under section 271D is not linked with the assessment, even if the income is subjected to tax the revenue may impose penalty under section 271D which is equal to amount accepted in cash. If the ruler agriculture land sold is not covered in the definition of capital asset in that case it may be argued that the provisions of income tax Act are not attracted on such transaction, the provision of section 269SS and 271D should not be applied.