This case involves Sanjeev Sehgal, who faced a penalty for cash transactions that exceeded the legal limits set under Section 269SS of the Income Tax Act for the assessment year 2017-18. The case highlights the implications of non-compliance with legal provisions regarding cash transactions.
Sanjeev Sehgal was penalized by the Joint Commissioner of Income Tax, Range-2, Ghaziabad for receiving cash of Rs. 2,05,000 in violation of Section 269SS. This section restricts cash transactions to discourage unaccounted money circulation.
The case reached the Income Tax Appellate Tribunal (ITAT) in Delhi, where the tribunal reviewed the penalties applied by the lower tax authorities. Despite the hearings, the appellant, Mr. Sehgal, did not appear, and the penalty was examined based on the available records.
The tribunal noted that the cash receipt occurred without any justifiable reason that could exempt the appellant from the penalty under Section 273B of the Act. The tribunal also highlighted the timeline of the transactions and the related documentation which did not support the appellant’s claims.
The ITAT dismissed Sanjeev Sehgal’s appeal, affirming the penalty for the contravention of Section 269SS. The decision underscored the strict enforcement of laws intended to curb black money through undocumented cash transactions.
This case serves as a crucial reminder for taxpayers about the severe implications of non-compliance with sections like 269SS of the Income Tax Act. It stresses the importance of adhering to legal norms for financial transactions to avoid punitive actions.
The ITAT’s decision in ITA 1752/DEL/2021 reiterates the judiciary’s stance on maintaining strict compliance with tax laws, especially regarding cash transactions that have long been a focus of tax evasion scrutiny.
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