The assessee had sold a flat for the A.Y. 2017-18, the sale proceeds of which were accepted in cash. Accordingly, a penalty was levied on her u/s 271D. The assessee filed a reply which was not accepted by the AO. The Commissioner (Appeals) confirmed the penalty order. The assesee appealed before the Tribunal.

The tribunal held that there was documentary evidence to support that the purchaser could not make full payment of the flat and hence the sale proceeds were given in instalments. The assessee had to travel to collect the same from Delhi and at the same time, she also made purchases for her daughter’s wedding. The issue to be decided under the umbrella provisions of Section 273B and not take the plea of ignorance. The assesee was successful in showing a reasonable cause for acting in such a manner. Hence, the penalty was to be quashed.  (AY.2017-18)