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Court upholds tax law validity, imposes fine on actress for loan violation. The court upheld the constitutional validity of sections 269SS, 276DD, and 271D of the Income-tax Act. Following the omission of section 276DD, it was ...
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Court upholds tax law validity, imposes fine on actress for loan violation.
The court upheld the constitutional validity of sections 269SS, 276DD, and 271D of the Income-tax Act. Following the omission of section 276DD, it was determined that only penalties, not imprisonment, could be imposed under section 271D. The accused, a cinema actress, had her 2-year rigorous imprisonment set aside but was required to pay a fine of Rs. 4,65,000 for obtaining a loan above Rs. 10,000 in violation of section 269SS.
Issues involved: Violation of section 269SS of the Income-tax Act, 1961 by obtaining a loan above Rs. 10,000 not through an account payee cheque or bank draft, constitutional validity of sections 269SS, 276DD, and 271D of the Income-tax Act, applicability of penalty and imprisonment post omission of section 276DD.
Violation of Section 269SS: The accused, a cinema actress, obtained a loan of Rs. 4,65,000 from a political party not through an account payee cheque or bank draft, leading to charges under section 276DD read with section 269SS of the Income-tax Act. The trial court found the accused guilty, sentencing her to 2 years rigorous imprisonment and a fine.
Constitutional Validity of Sections 269SS, 276DD, and 271D: The accused challenged the constitutional validity of these sections before the apex court, which upheld their constitutionality. The omission of section 276DD from the Act did not repeal it, leading to the conclusion that prosecution for violations of section 269SS could continue under section 271D.
Applicability of Penalty and Imprisonment Post Omission: Post the omission of section 276DD, the court held that only penalties could be levied under section 271D, not imprisonment. The court set aside the 2-year imprisonment but confirmed the fine of Rs. 4,65,000 imposed on the accused.
Conclusion: The revision was allowed in part, setting aside the 2-year rigorous imprisonment but confirming the fine imposed on the accused for violating section 269SS of the Income-tax Act.
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