TMI Blog2014 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... for illness - This explanation was found to be lacking in bona fides - the loan has been repaid in cash and which loan is to the extent indicated in Section 269T – The object and purpose of section 269T is to encourage the loans being repaid and of huge amounts by account payee cheque or by bank draft - thus, no substantial question of law arises for consideration – Decided against Assessee. - IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 269T was attracted yet the cause shown was reasonable, namely, the amount was paid in installments on account of serious illness of the father of Amrutpal Singh Sandhu. Since the amount was required for illness, this was not the case where penalty of twice the amount could have been imposed. 3. We are not impressed by any of these contentions. Firstly, Mr. Chatterjee would read Section 269T b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on with the Branch of the banking company or cooperative bank, as the case may be, the other company or cooperative society or 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 payable on such loans or deposits, is Rs.20,000/- or more. That is to be read, therefore, in the context of the loan or deposit. The clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious dates varying from 12.04.2005 to 31.03.2006. The Assessee has not paid the amount on one date, but over a period of one year, to each of the loan creditor. The Commissioner of Income Tax (Appeals), as also, the Tribunal found that the explanation of the Assessee was that the loan was repaid in cash as the father of Amrutpal Singh Sandhu was not well and the amount was required for illness. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... troduced in 1981. However, as far as Section 269T is concerned, it has been substituted post several amendments and to take care and ensure that the loans are not repaid in a manner otherwise than indicated in the section. The object and purpose is obvious and to encourage the loans being repaid and of huge amounts by account payee cheque or by bank draft. In these circumstances we do not find tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
