Query regarding Sec 269T & 269SS

[Dass and co]

A individual tax payer had 200000 cash in hand in his books of accounts.

He gave loan of ₹ 200000 in cash to any third person.

Sec 269 SS prohibits that third person to receive loan in form of cash.

Is there any section or any case law which prohibits the person who is giving loan to not to give that loan in form of cash?

Plese reply.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have got clarified in the above issue? If not please inform.

AI Summary

Prohibition on cash loans questioned: does law bar a lender from advancing a loan in physical cash after recipient restrictions are noted?
Whether statutory provisions on cash transactions bar a lender from advancing a loan in currency notes is the central question. The factual matrix involves a taxpayer who held cash in his books and advanced that cash as a loan; the inquirer notes an existing prohibition on recipients receiving loans in cash and asks whether any provision or case law similarly restrains the lender from disbursing cash.