9911796707
TMI Blog2000 (5) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the course of assessment proceedings for the assessment year 1990-91, it was found by the Assessing Officer that assessee-company has accepted deposits/loans in cash from the following persons:-- ------------------------------------------------------------------------------ (1) Smt. Laxmi Devi Rs. 1,01,750 (2) Sh. Ravindra Kumar Rs. 51,450 (3) Sh. Sunil Kumar Agarwal Rs. 41,000 ------------------------------------------------------------------------------ Rs. 1,94,200 ------------------------------------------------------------------------------ 3. The matter was referred to the Dy. CIT, Alwar Range, Alwar, who allowed opportunity to the assessee. It was explained by the assessee that Smt. Laxmi Devi and Shri Ravindra Kumar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -1994. 5. Now, the revenue is in appeal before us against the deletion of penalty in respect of two deposits of Rs. 1,01,750 and Rs. 51,450. It was submitted by the ld. D.R. that as per section 269SS, the amount of loan for deposit can be taken only by account-payee cheque or account-payee draft and not otherwise. Therefore, the assessee has violated the provisions of section 269SS and the penalty has rightly been imposed by the Dy. CIT, Alwar Range, Alwar. He urged that order passed by the CIT(A) on this account should be reversed and the order passed by the Dy. CIT(A), Alwar Range, Alwar should be confirmed. 6. On the other hand, the ld. A/R submits that Smt. Laxmi Devi and Shri Ravindra Kumar were having their Savings Bank Accounts wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 With a view to countering this device. which enables taxpayers to explain away unaccounted cash or unaccounted, deposits, the Finance Act has inserted a new section 269SS in the Income-tax Act debarring persons from taking or accepting, after 30th June, 1984, from any other person any loan or deposit otherwise than by an account-payee cheque or account-payee bank draft if the amount of such loan or deposit or the aggregate amount of such loan and deposit is Rs. 10,000 or more. This prohibition will also apply in cases where on the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid (whether repayment has fallen due or not), and the amount or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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