The Income Tax Appellate Tribunal (ITAT) Cuttack, in a recent judgement, has given relief to Mr Choudhury in a case involving cash component in the sale of a property in Jharsuguda, Odisha, during assessment year (AY) 2019-20. The Income Tax Department had questioned the transaction after Choudhury took Rs 5.22 lakh in cash and the remaining amount in his bank account. Under income tax rules, one cannot take more than Rs 2 lakh in cash for such transactions. Why did Choudhury take part-payment in cash for selling property? The Income Tax Assessing Officer (AO) from Berhampur had learned from the property registrar office in Jharsuguda that Choudhury had sold his property to Mr Nayak and received part payment of Rs 5.22 lakh in cash. The registered sale deed also recorded this fact. Thus, the AO sent Choudhury an income tax notice under Section 269SS and imposed a penalty on him under Section 271DA.