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2013 (11) TMI 1246 - HC - Income TaxPenalty u/s 271E - Violation of section 269T - Held that:- The assessee has repaid the loan by way of a debit entry in the form of transfer of shares - No repayment was made by either cash, cheque or demand draft - The Institute of Chartered Accountants of India had clarified that loans created/discharged by means of transfer entries do not constitute acceptance or repayment of deposits of loan in cash and thus do not contravene the provisions of Section 269-SS and 269-T - The Assessing Officer, Appellate Authority as well as Tribunal did not consider the method of transaction, which was by way of discharge of the liability of the loan - The assessee was paying interest on the loan regularly as reflected in his statement of affairs and profit and loss account in the financial years 1992-93 and 1993-94 - The repayment of loan was not made after sale of shares. The assessee appellant had debited the account being cost of shares. The transaction between Karta of HUF and the HUF could not be termed as deposits as provided under Section 269-T at the relevant time. The transactions were made between two taxable entities - The repayment was made, by debit entires - The provisions of Section 269-T providing for deposits to be made over and above Rs. 20, 000/- only by account payee cheque or account payee bank draft, were not attracted - Decided in favour of assessee.
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