TMI Blog2022 (11) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... gh the cash book placed on record and statement of loan taken and loan repaid in cash drawn from the cash book it can be noted that the amount of loan taken from each person and amount of loan repaid to each person does not exceed Rs.20,000/-. Revenue Authorities levied and confirmed the penalty by holding that Aggregate of loan/deposits taken/paid by the assessee is more than Rs.20,000/- by not appreciating the provisions of these Sections. In my view, after evaluating the provisions of law, aggregate of loan is to be seen personwise and not aggregate loan taken from all the persons in the whole year. Therefore, under these present facts and circumstances of the case, the penalty is not attracted in the present case and thus both the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed the return of income declaring total income at Rs.4,33,400/-. The AO framed the assessment u/s 143(3) read with Section 148 of the Act on 20-01-2016 at an income of Rs.4,90,610/-. During the course of audit, it was observed by the audit party that the assessee had received cash of Rs.9,77,500/- from various parties which according to the Revenue is violation of Section 269SS and thus attracts penalty u/s 271D of the Income Tax Act, 1961. It was also noticed that the assesse had paid cash of Rs.10,07,500/- to various parties which according to the Revenue is violation of Section 269T of the Act and thus attracts the penalty u/s 271E of the Act. Accordingly, the JCIT, issued show cause notice and after providing the opportunity of heari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and the aggregate of which is more than Rs. 20,000/-. Thus the same is in contravention of Section 269SS and 269T of the Act and ld. CIT(A) confirmed the penalty levied u/s 271D and 271E of the Act respectively. 2.8 In order to solve the controversy in question, it is necessary to evaluate the provisions of Section 269SS and also the provision of Section 269T of the Act which reads as under:- 1. The provision of Section 269SS reads as under: No person shall take or accept from any other person (herein referred to as the depositor), any loan or deposit or any specified sum, otherwise than by an account payee cheque or account payee bank draft or use of electronic clearing system through a bank account or through such other ele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -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, or (c) the aggregate amount of the specified advances received by such 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 specified advances, is twenty thousand rupees or more. 2.9 After having gone through the legal proposition as enumerated above, the Bench found that the plain reading of both the Sections denotes that Section 269SS is attracted when the amount of loan taken from individual person exceeds Rs,20,000/- and Section 269T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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