Yet not, as per the 2nd proviso so you’re able to Point 269SS, in which both depositor plus the recipient are experiencing farming earnings and tend to be perhaps not within the receipt of every most other nonexempt income, Section 269SS are certain to get zero software.
Generally speaking, as per the conditions out-of Section 269SS, a guy cannot discover improves on the market off immovable property off Rs. 20,100000 or more inside the bucks. 20,000 or higher according of said on the market out-of property could be liable to penalty below section 271D of one’s Act.
The latest proviso in order to point provides “Given then the arrangements regarding the area will not incorporate to your mortgage otherwise deposit otherwise specified sum, the spot where the people away from just who the mortgage or put or given sum was pulled or approved together with people by the whom the new mortgage or deposit or specified contribution is actually pulled otherwise accepted, try one another having farming money and you will none of these features one money rechargeable so you’re able to income tax less than which Work.” They specifies one greet off put/ mortgage /given sum will perhaps not desire conditions away from sec 269SS where both the newest events is agriculturists and each other have income lower than very first exemption limit
Q. Mr. Lal Singh purchased a farming home to have Rs. step 1,80,100 in dollars out-of Mr. Nijjar Singh. They both is actually agriculturists and not one of them provides money exceeding might exclusion limit. If or not Sec.269SS getting relevant on them and you may whether punishment you/s 271D will be enforced on them?.
Ans. It’s becoming listed one sec 269SS works together with acknowledgment out of specified sum and need towards the area provides the definition of given share “brings in people amount of cash receivable, whether or not since the progress otherwise, about import off an immovable assets, perhaps the import happen.” They discusses not only advance pertaining to immoveable possessions, plus currency acquired within lifetime of import regarding possessions.
Yet not, just like the both Mr. Lal Singh and you can Mr. Nijjar Singh was agriculturists and you can one another has actually earnings lower than very first different limitation, sec 269SS will not appropriate on them. Mr. Nijjar Singh have received ‘specified sum’ besides account payee cheque/ draft otherwise ECS. But this can maybe not total citation off sec 269SS and you will and that, punishment you/s 271D shall not implemented.
However, the question that pops up here’s if or not it status manage continue to utilize even where in fact the profit planning paid down just like the cash advance could have been subjected to TDS less than Section194-IA of one’s Work
The clear answer perform are still same even if the residential property are almost every other than just agriculture homes once the exception provided is not related to sorts of possessions. As an alternative, the new different is for this new agriculturists. Thus, sec 269SS will never be appropriate in this case.
Given that cash received by the Mr
In case the said into property is Rs. 5,00,one hundred thousand the solution tend to still will always be same. Although not, in this instance sec 269ST was applicable. Sec 269ST brings that arrangements regarding the area should not apply to deals of the characteristics described in area 269SS.It is to-be listed that purchase ranging from a few agriculturists who’re that have money below taxable restriction is not covered by sec 269SS and hence sec 269ST is going to be applicable inside it.
Nijjar singh exceeds Rs. dos,00,100 specifications away from sec 269ST try violated. Punishment amounting to Rs. 5,00,100000 can be enforced you/s 271DA.
Point 269SS might have been joined without a doubt which have a perspective to eliminate purchases for the black colored money and also to make certain that payments out of Rs. 20,000 and significantly more than, is actually traceable to help you transactions thanks to a bank. Show app money partakes the character from a deposit, because it is repayable into the specie with the refusal to allot shares which is repayable if the remembered by candidate, just before allotment out of shares in addition to conclusion of your own offer. Bhalotia Technology Really works (P.) Ltd. compared to. CIT 275 ITR 399 (Jhar.)