Wealth4India

Cash Received on Property Sale: Can Section 271D Penalty Apply? ITAT Hyderabad Gives Major Relief - If cash is received as part of the sale consideration at the time of registration of a sale deed, can the Income Tax Department levy penalty under Section 271D for violation of Section 269SS? ITAT Hyderabad in Mohammed Shabbir Bhojani vs ITO deleted Section 271D penalty, holding that cash received as final property sale consideration at registration does not attract Section 269SS penalty where no AO satisfaction was recorded. The Tribunal deleted the penalty of ₹36,00,000 under Section 271D and gave an important ruling on the scope of Section 269SS in immovable property transactions.

Cash Received on Property Sale: Can Section 271D Penalty Apply? - CA ALOK KUMAR ITAT Hyderabad in Mohammed Shabbir Bhojani vs ITO deleted Section 271D penalty, holding that cash received as final property sale consideration at registration does not attract Section 269SS penalty where no AO satisfaction was recorded.

क्या आयकर विभाग केवल इस आधार पर कोई बड़ी addition कर सकता है कि आपका नाम किसी अन्य व्यक्ति की diary या pen drive में लिखा हुआ पाया गया है?
इस प्रश्न पर ITAT Hyderabad ने SVS Projects India Private Limited vs ACIT के मामले में एक महत्वपूर्ण सिद्धांत को फिर से स्पष्ट किया है।
Tribunal ने माना कि third-party document यानी किसी तीसरे व्यक्ति के पास से मिला हुआ document, diary, loose paper या pen drive केवल संदेह पैदा कर सकता है। लेकिन केवल संदेह के आधार पर किसी taxpayer की taxable income नहीं मानी जा सकती।
जब तक Revenue यह स्वतंत्र और ठोस evidence से साबित न करे कि वास्तव में transaction हुआ था, cash का actual movement हुआ था, और उसका सीधा संबंध assessee से है, तब तक ऐसी addition sustainable नहीं हो सकती।
किसी third-party diary या pen drive में नाम आ जाना inquiry का कारण हो सकता है, लेकिन tax addition का आधार नहीं बन सकता। Suspicion जांच शुरू कर सकता है, परंतु suspicion alone taxable income नहीं बना सकता।

Third-Party Diary Is Not Taxable Income: ITAT Deletes ₹14.16 Crore Addition - CA ALOK KUMAR Can the Income Tax Department make a huge addition only because your name appears in someone else’s diary or pen drive? A third-party document may create suspicion, but suspicion alone cannot become taxable income unless the Revenue proves the transaction with independent evidence.

The CCFS 2026 extension to 31 August 2026 is a valuable opportunity for companies to clear old ROC filing defaults and restore compliance at a lower cost. Companies with pending AOC-4, MGT-7, MGT-7A, ADT-1 or related forms should act immediately.
This extension should be used as a compliance clean-up window, not as a reason to delay. Companies should review their MCA master data, prepare missing documents, complete accounts and audits, and file all eligible forms well before the revised deadline.
For professional support, connect with CA Alok Kumar’s team for ROC filing services in Delhi, Company Registration & LLP Formation, Accounting and Virtual CFO Services, and Audit & Assurance Services.

CCFS 2026 Extension to 31 August 2026: Important MCA Relief for Pending ROC Filings - CA ALOK KUMAR CCFS 2026 extension gives companies time up to 31 August 2026 to complete pending ROC filings under the Companies Compliance Facilitation Scheme, 2026.

Penalty under Section 271(1)(c) is not automatic merely because income was disclosed during reassessment.
ITAT Chennai, in Mangadu Natarajan Balasundharam vs ITO, deleted the concealment penalty where the assessee disclosed Long-Term Capital Gain in the return filed under Section 148 and the Assessing Officer accepted that return without making any further addition.
Key point:
If the Section 148 return is accepted as filed, penalty cannot be imposed mechanically only by comparing it with the original return.
Read the detailed case analysis:
https://caalokkumar.com/my-writing/section-271-1-c-penalty/
Need help with income tax notice or demand response?
https://caalokkumar.com/income-tax-demand-notice-response.html

Foreign Tax Credit Form 67: Important Relief for Taxpayers with Foreign Income
In Neeta Makkar v. DCIT, ITAT Kolkata held that foreign tax credit cannot be denied merely because Form 67 was filed late, where the claim is genuine and verifiable.
The assessee’s returned income was accepted, but FTC of ₹8,81,398 was denied only due to delayed Form 67 filing. The Tribunal allowed the appeal.
This is useful for taxpayers with foreign salary, dividends, ESOPs, RSUs, consultancy income, foreign pension or NRI tax matters.
Read full article:
https://caalokkumar.com/my-writing/foreign-tax-credit-form-67/
Need help with Form 67, foreign income reporting or ITR filing? Contact CA Alok Kumar.

Important update for salaried taxpayers: If your Form 26AS does not show full TDS because your employer failed to deposit it, you may still contest the demand with proper proof.
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When TDS deducted but not deposited by employer does not appear in Form 26AS, salaried taxpayers often face a difficult situation: the employer has already reduced tax from salary, but the Income Tax Department’s CPC system may still raise a demand because the corresponding credit is missing. A recent Mumbai ITAT ruling in Sophia Rick v. ITO has again reinforced an important principle: an employee should not be made to pay the same tax again merely because the employer failed to deposit TDS with the Government. The Tribunal directed the Assessing Officer to verify salary slips, Form 16, bank statements and supporting records, and allow full TDS credit if deduction from salary is established.
https://caalokkumar.com/my-writing/tds-deducted-but-not-deposited-by-employer/

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Celebrating CA Day, GST Day & Doctors’ Day — honoring the professionals who strengthen India’s economy, compliance, trust and public well-being.
Gratitude to Chartered Accountants, tax professionals and doctors for their dedication, integrity and service to the nation.

Wealth4india # Market update 2026