Queries u/s.269T of the I.T.Act

[NARENDRA KUMAR SHARMA]

QUERIES SECTION

Under section 269T of the IT Act  repayment of account payee cheque or account payee bank darft drawn in the name of persion who has made the loan. But if the repayment is by way of transfer of goods or through sale of goods. Is it violation of section 269T or not.

Kindly clearify the position with citation of case laws.

AI Summary

Non-cash repayment: adjusting obligations by goods or accounting entries does not trigger the prohibition on cash-mode repayments.
Repayment by transfer or sale of goods does not fall within section 269T where no money changes hands; accounting adjustments, journal entries, receivables set-offs, stock transfers and recharacterisation of a loan as an advance or security are treated as non-monetary settlements, and parties should document the revised understanding to confirm characterisation.