TMI Blog2007 (7) TMI 711X X X X Extracts X X X X X X X X Extracts X X X X ..... an agreeing to pay Rs. 1000/- until the principle sum was repaid. The defendant's bank cheques drawn on Union Bank of India, Shivajinagar branch, when bounched, impelled the plaintiff to institute the suits as well as proceedings under the Negotiable Instruments Act, 1881. 3. Defendant entered appearance and filed written statement denying the plaint averments. The plaintiff examined himself as PW-1 and another witness as PW-2 and exhibited 11 documents Exs. P-1 to P-11 while the defendant examined himself as DW-1 and another witness as DW-2 but did not exhibit any documents. The trial court, in the premises of the pleadings of the parties, framed points for consideration and on appreciation of the evidence both oral and documentar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 aggregate amount remaining unpaid; or c) the amount or the aggregate amount referred to in Clause (a) together with the amount or the aggregate amount referred to in Clause (b), is twenty thousand rupees or more: Provided that the provisions of this section shall not apply to any loan or deposit taken or accepted from, or any loan or deposit taken or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 269 is to ensure that a tax payer is not allowed to give false explanation for his unaccounted money, or if he has given some false entries in his accounts, he shall not escape by giving false explanation for the same. During search and seizure unaccounted money is unearthed and the tax payer would usually give the explanation that he had borrowed or received deposits from his relatives or friends sand it is easy for the so-called lender also to manipulate his records later to suit the plea of the tax-payer. The main object of Section 269-SS was to curb this menace. 7. In the light of the observations of the Apex Court, it cannot but be said that Section 269-SS only provided for the mode of acceptance payment or repayment in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 271-C, Section 271-D, Section 271-E, (Section 271-F (Section 271-G) Clause (c) or Clause (d) of Sub-section (1) or Sub-section (2) of Section 272-A, Sub-section (1) of Section 272-AA) or (Section 272-B or) Sub-section (1) of (Section 272-BB or Sub-section (1) of Section 272-BBB or) Clause (b) of Sub-section (1) or Clause (b) or Clause (c) of Sub-section (2) of Section 273, no penalty shall be imposable on the person or the assessee, as the case may be, for any failure referred to in the said provisions if he proves that there was reasonable cause for the said failure. 10. This Section provides that notwithstanding anything contained in Section 271D no penalty shall be imposed on the person or assessee, for failure to comply with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th regard to contravention of legal provision. In the light of the observations of the Supreme Court supra as to the purpose of enactment under Section 269-SS of the Act, coupled with the fact that the Trial Court, considered and rejected the plea that the transaction was void, though such a plea was not taken in the written statement, I am afraid the aforesaid decisions have no applicability to the facts and circumstances of this case. 13. The Trial Court on a proper appreciation of the evidence both oral and documentary recorded a finding of fact that the plaintiff extended the loan which the defendant-petitioner received and was liable to repay the said sum. In addition the Trial Court concluded that the petitioner's cheques for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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