2006 (4) TMI 101

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..... cording to it was a loan taken from a sister concern. The Assessing Officer held that this repayment was contrary to the provisions of section 269T of the Income-tax Act, 1961 which inter alia required that such repayment could not be made except by an account payee cheque or an account payee bank draft drawn in the name of the person who had advanced the loan. A penalty of Rs. 17,88,090 was accor .....

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..... f the lender. On either account, therefore, levy of penalty by the Assessing Officer was impermissible according to the Commissioner. Aggrieved by the above order, the Revenue appealed to the Income-tax Appellate Tribunal inter alia contending that the provisions of section 269T had been subsequently amended so as to cover a loan transaction also. It was argued that since the said amendment was c .....

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..... ment in terms applied only to "deposits" and not to "loans". What she contended was that the amendment of the said provision bringing loans also within its purview was only clarificatory especially when there was no change in the definition of the term "deposit" given in the Explanation to section 269T. There is, in our opinion, no merit in the contention that "deposit" is synonymous to "loan" for .....

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..... on 269T of the 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 case where the amount of deposit or the aggregate of the deposit held, exce .....

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..... opinion wholly inconsequential. The Explanation after the amendment defines the expression "loan or deposit" as under: "'loan or deposit' means any loan or 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 loan or deposit of any nature." The Tribunal was in the light of what is stated above justified in holdi .....

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