38.6c New Delhi, India, Thursday, October 09, 2025
Top Stories Supreme Court
Political NEWS Legislative Corner Celebstreet International Videos
Subscribe Contact Us
close
Judiciary

IT authorities to be informed if suit involved cash transaction of Rs two lakh or more: SC [Read Judgment]

By Jhanak Sharma      17 April, 2025 10:58 AM      0 Comments
IT authorities to be informed if suit involved cash transaction of Rs two lakh or more SC

NEW DELHI: The Supreme Court on Wednesday asked the courts to inform the Income Tax department if any suit claimed to have made a cash transaction of Rs two lakh and above, in order to verify the transactions and check violation of Section 269ST of the Income Tax Act, 1961.    

A bench of Justices J B Pardiwala and R Mahadevan said that whenever, a sum of Rs two lakh and above is claimed to be paid by cash towards consideration for conveyance of any immovable property in a document presented for registration, the sub-registrar should inform the income tax authority, who would follow the due process in law before taking any action.

Under Section 269ST of the Income Tax Act, it is prohibited for any person to receive an amount of Rs two lakh or more in cash, from a person in a day, either for a single transaction or for multiple transactions related to one event or occasion. If a person receives the amount in cash of Rs two lakh or more, he is liable to pay a penalty equal to the amount received in cash.

“Whenever, it comes to the knowledge of any income tax authority that a sum of Rs two lakh and above has been paid by way of consideration in any transaction relating to any immovable property from any other source or during the course of search or assessment proceedings, the failure of the registering authority shall be brought to the knowledge of the chief secretary of the state," the bench said.

The court said the chief secretary can then initiate disciplinary action against such an officer who failed to intimate the transaction.

The bench also noted that most times, such transactions go unnoticed or not brought to the knowledge of the income tax authorities. It is a settled position that ignorance in fact is excusable but not the ignorance in law, the court said.

The court here was dealing with a property dispute involving Bengaluru-based RBANMS Educational Institution.

The court was informed the institute was leased a property known as 'Sappers Practice Ground'. In 1929, the property was formally conveyed to RBANMS Educational Institution and since then it was in continuous possession of the place.

B Gunashekar and others filed a suit for permanent injunction for restraining the Institution from creating any third-party interest over the property.

The suit was filed based on an alleged 2018 agreement to sell executed by Gunashekar and Ramesh S Reddy with Maheshwari Ranganathan and others in respect of the property for a sale consideration of Rs 90 lakh, for which, the parties claimed to have paid Rs 75 lakh in cash as an advance payment. The top court rejected the suit filed by Gunashekar and others and allowed the plea filed by RBANMS Educational Institution.

Having noted the claim of payment of Rs 75 lakh in cash, the bench said, "Though the amendment has come into effect from April 1, 2017, we find from the present litigation that the same has not brought the desired change. When there is a law in place, the same has to be enforced."

[Read Judgment]



Share this article:

About:

Jhanak is a lawyer by profession and legal journalist by passion. She graduated at the top of her cl...Read more

Follow:
FacebookTwitterLinkedinInstagram


Leave a feedback about this
Related Posts
View All

Order to appoint One Man Committee of Justice (Retd.) Lokur for the Prevention of Stubble Burning Kept in Abeyance by SC itself [READ ORDER] Order to appoint One Man Committee of Justice (Retd.) Lokur for the Prevention of Stubble Burning Kept in Abeyance by SC itself [READ ORDER]

CJI suggests holding measures in abeyance, questioning the PIL petitioner in the stubble burning case. Justice (Retd.) Madan B Lokur's role also discussed.

"Experts Say Your Beautiful Cars Also Contribute to Air Pollution," CJI SA Bobde Says While Hearing Stubble Burning Issue "Experts Say Your Beautiful Cars Also Contribute to Air Pollution," CJI SA Bobde Says While Hearing Stubble Burning Issue

Chief Justice of India S.A. Bobde ensures no stubble burning orders will be passed without considering petitioners' input, confirms Senior Advocate Vikas Singh.

Centre states that Farmers Stubble Burning contributes to 10% Pollution; SC retailitates saying, 'Pollution is caused by city-related issues. Take care of them and then we will come to stubble burning' Centre states that Farmers Stubble Burning contributes to 10% Pollution; SC retailitates saying, 'Pollution is caused by city-related issues. Take care of them and then we will come to stubble burning'

Supreme Court urges Centre, Punjab, Haryana, and UP to implement work-from-home due to air pollution. Next hearing set for November 17, 2021.

WhatsApp Assures High Court Of Full Cooperation In Dhanbad Judge Murder Case WhatsApp Assures High Court Of Full Cooperation In Dhanbad Judge Murder Case

The CBI has charged auto-rickshaw driver Lakhan Verma and his brother Rahul with murder and false information, invoking IPC Sections 302, 201, and 34.

TRENDING NEWS

pmla-appellate-tribunal-orders-immediate-release-of-seized-bmw-x7-in-hemant-soren-land-scam-case
Trending Crime, Police And Law
PMLA appellate tribunal orders immediate release of seized BMW X7 in Hemant Soren land scam case [Read Order]

PMLA tribunal orders ED to release seized BMW X7 in Hemant Soren land scam case, citing lack of proof linking the luxury car to money laundering.

08 October, 2025 08:06 PM
offence-under-category-of-upholding-family-prestige-sc-orders-release-of-man-on-remission
Trending Judiciary
'Offence under category of upholding family prestige,' SC orders release of man on remission [Read Judgment]

SC orders immediate release of life convict who served 22 years for a murder committed to uphold family honour, citing Maharashtra remission guidelines.

08 October, 2025 08:19 PM

TOP STORIES

allahabad-hc-refuses-interim-protection-to-sambhal-mosque-asks-petitioners-to-approach-appellate-court
Trending Judiciary
Allahabad HC Refuses Interim Protection to Sambhal Mosque, Asks Petitioners to Approach Appellate Court [Read Order]

Allahabad High Court refused interim protection to Sambhal mosque, directing petitioners to seek remedy before the appellate court under UP Revenue Code.

06 October, 2025 04:48 PM
calling-off-marriage-after-courtship-not-a-crime-or-breach-of-promise-delhi-hc
Trending Judiciary
Calling Off Marriage After Courtship Not A Crime Or Breach Of Promise: Delhi HC [Read Order]

Delhi High Court grants bail, ruling that ending marriage plans after courtship is not a breach of promise or offence under false promise to marry.

06 October, 2025 05:03 PM
celebrating-bail-on-social-media-not-ground-for-cancellation-without-specific-threat-to-complainant-delhi-hc
Trending Judiciary
Celebrating Bail On Social Media Not Ground For Cancellation Without Specific Threat To Complainant: Delhi HC [Read Order]

Delhi HC rules that celebrating bail on social media isn’t grounds for cancellation unless a specific threat or intimidation is proven.

06 October, 2025 05:25 PM
woman-cannot-claim-maintenance-after-securing-rape-conviction-against-live-in-partner-jammu-and-kashmir-hc
Trending Judiciary
Woman Cannot Claim Maintenance After Securing Rape Conviction Against Live-In Partner: Jammu & Kashmir HC [Read Order]

J&K High Court held that a woman who secured a rape conviction against her live-in partner cannot claim maintenance under Section 125 CrPC.

06 October, 2025 06:08 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email