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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 ..... tions 269SS and 269T as the provision stood before amendment in the relevant assessment year provided for repayment of certain "deposit" by way of account payee cheque not that of loan – Thus, this revenue’s appeal is meritless so it is dismissed - - - - - Dated:- 13-5-2004 - Judge(s) : ARUN MISHRA., N. S. AZAD. JUDGMENT The judgment of the court was delivered by ARUN MISHRA J.- This appeal has been preferred by the Commissioner of Income-tax, Jabalpur, under section 260A of the Income-tax Act, 1961, aggrieved by an order passed by the Income-tax Appellate Tribunal, Jabalpur in I.T.A. No.530/Jab/95 on December 9, 1998 relating to the assessment year 1990-91. For the assessment year 1990-91, the assessee was charged with the pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghtly imposed which has been illegally set aside. Shri G.N. Purohit, learned counsel for the respondent-assessee, has submitted that the order is proper. Loan has been later on specifically included under section 269T of the Act in the year 2002; section 269T was not attracted, hence, no interference is called for in this appeal. Section 269T of the Act provides mode of the repayment of certain deposits, in case repayment is made of any deposit where the aggregate of the amount of deposit and interest is Rs. 10,000 or more, the same has to be paid by an account-payee cheque or account-payee bank draft. As per the proviso to sub-section (1) the amount can be credited in the account if the repayment is by a banking company or co-operative b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of a person other than a company, includes deposit of any nature." Amendment has been made in the above provisions by the Finance Act, 2002. The amended section 269T reads thus: "269T. Mode of repayment of certain loans or deposits.- No branch of a banking company or a co-operative bank and no other company or co-operative society and no firm or other person shall repay any loan or deposit made with it otherwise than by an account-payee cheque or account-payee bank draft drawn in the name of the person who has made the loan or deposit if- (a) the amount of the loan or deposit together with the interest, if any, payable thereon, or (b) the aggregate amount of the loans or deposits held by such person with the branch of the banking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he existing provisions of section 269T of the Income-tax Act, no branch of a banking company, co-operative bank and no other company or co-operative society or partnership firm or other person, can repay any deposit made with such entity otherwise than by an account-payee cheque or an account-payee draft drawn in the name of the person who has made the deposit, in cases where the amount of deposit or the aggregate of the deposits held, exceeds twenty thousand rupees. The Explanation below sub-section (2) of the said section defines 'deposit' to mean 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. The said section, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposits not the transaction of loan. Prior to the amendment made in section 269T of the Act, section 269SS provided the mode of taking or accepting certain loans and deposits. The relevant part of section 269SS is quoted below: "269SS. No person shall, after the 30th day of June, 1984, take or accept from any other person, any loan or deposit otherwise than by an account-payee cheque or account-payee bank draft if,- (a) the amount of such loan or deposit or the aggregate amount of such loan and deposit; or (b) 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), the amount or the aggreg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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