21 July 2010
Dear Experts, Can anyone explain me about 269SS and the case law in which the assessing officer has disallowed the payments. With regards, Rajesh
02 August 2010
Section 269SS provides that any loan or deposit shall not be taken or accepted otherwise than by an account payee cheque or account payee bank draft if the amount of such loan or deposit or the aggregate amount of such loan and deposit (including existing balance of loan and deposits)on the date of taking or accepting such loan or deposit is twenty thousand rupees or more, except in few cases listed in S.269SS as specifically exempt. Otherwise, there are penal provisions in Section 271D of Income Tax Act 1961, which provides that if a loan or deposit is accepted in contravention of the provisions of section 269SS then a penalty equivalent to the amount of such loan or deposit may be levied by the Joint commissioner.
Similarly, for repayment of loan or deposit, one should adhere S.269T, which restricts repayments in similar manner, othersie penal provisions of S.271D may come into picture.
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