A bench of Justices JB Pardiwala and R Mahadevan was hearing a petition related to the ownership of a property in which it was claimed that Rs 75 lakh in cash was given as advance payment on April 10, 2018. The Supreme Court said that this case not only raises doubts about the transaction but also shows violation of law.

The Supreme Court on Wednesday issued directions to implement the Rs 2 lakh limit on cash transactions, saying if there is a law, it should be implemented. The court expressed concern over the unsatisfactory implementation of the provisions of the Finance Act 2017 that capped the limit of cash transactions at Rs 2 lakh.

Issuing several directions in this regard, the Court said that whenever any such case comes before the courts in any area, they should inform the Income Tax Department of that jurisdiction about it so that the department can take appropriate action by following due legal procedure.

Cash transactions of Rs 2 lakh or more were banned in 2017

It is noteworthy that the government had banned cash transactions of Rs 2 lakh or more from April 1, 2017 through the Finance Act-2017.

A bench of Justices JB Pardiwala and R Mahadevan was hearing a petition related to the ownership of a property in which it was claimed that Rs 75 lakh in cash was given as advance payment on April 10, 2018. The Supreme Court said that this case not only raises doubts about the transaction but also shows violation of law.

Taking note of the situation, the Supreme Court directed that whenever a suit is filed claiming that a transaction involving payment of Rs 2 lakh or more in cash has been entered into, the courts should inform the jurisdictional Income Tax Department to verify the transaction and the violation of section 269ST of the Income Tax Act.

PC:Jagran