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TMI Blog2004 (5) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 269T of the Act. A show-cause notice was issued as to why the assessee be not levied with penalty for violation of section 27IE of the Act. Reply was filed by the assessee. The Assessment Officer passed an order (A.1) dated March 7,1991, holding that the case for penalty was made out. Penalty of Rs. 31,200 was imposed. An appeal was filed by the assessee to the Commissioner of Income-tax (Appeals). The appeal was dismissed. Imposition of penalty was upheld. Order (A.2) was passed by the appellate authority on August 23, 1994. Aggrieved by the orders, the assessee filed the appeal before the Income-tax Appellate Tribunal. The appeal has been allowed and the order passed by the Commissioner of Income-tax (Appeals) has been set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ides that for the purposes of this section "deposit" means "any deposit of money" which is repayable after notice or repayable after a period and in the case of a person other than a company includes "deposit of any nature". Section 269T, sub-section (1) and its Explanation (ii) which are relevant quoted below: "269T.(1) No company (including a banking company), co-operative society or firm shall repay to any person any deposit otherwise than by an account-payee cheque or account-payee bank draft where the amount of the deposit, or where the amount of the deposit is to be repaid together with any interest, the aggregate of the amount of the deposit and such interest, is ten thousand rupees or more: Provided that where the repayment is by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case may be, the other company or co-operative society or the firm, or other person either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such loans or deposits, is twenty thousand rupees or more: Provided that where the repayment is by a branch of a banking company or co-operative bank, such repayment may also be made by crediting the amount of such loan or deposit to the savings bank account or the current account (if any) with such branch of the person to whom such loan or deposit has to be repaid: Explanation.- For the purposes of this section,- (i) 'banking company' shall have the meaning assigned to it in clause (i) of the Explanation to section 269SS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icable only to deposits. It is proposed to substitute the existing section by a new section so as to extend its scope to loans also, and delete provisions contained therein, which have become obsolete. These amendments will take effect from June 1, 2002." The object of the modification is clear that the scope of section 269T has been extended to loans also for the first time. It is not a case of clarificatory amendment incorporated as submitted by learned counsel for the Revenue; loan is distinguishable from deposit and loan has been included with effect from June 1, 2002, in our opinion, the submission of learned counsel for the appellant that this court should hold that deposit of any nature includes the loan also, is not acceptable and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the aggregate amount referred to in clause (a) together with the amount or the aggregate amount referred to in clause (b), is twenty thousand rupees or more:... Explanation.- For the purposes of this section,- (i) 'banking company' means a company to which the Banking Regulation Act, 1949 (10 of 1949), applies and includes any bank or banking institution referred to in section 51 of that Act; (ii) 'co-operative bank' shall have the meaning assigned to it in Part V of the Banking Regulation Act, 1949 (10 of 1949); (iii) 'loan or deposit' means loan or deposit of money." A bare reading of section 269T prior to the amendment and section 269SS makes it abundantly clear that the Legislature made a distinction between the mode of repayment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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