https://www.taxtmi.com/caselaws?id=118343 The Tribunal found that penalties imposed for violating section 269SS by borrowing sums without using account payee cheques/drafts were unwarranted. The appellant's argument that borrowed amounts were necessary to clear cheques and avoid legal consequences was accepted. The Tribunal recognized the intertwined nature of the appellant and its Director in financial matters, emphasizing the lack of a clear distinction between the company and its management. Considering the intent behind the provision to prevent tax evasion, the Tribunal concluded that the transactions did not violate section 269SS, leading to the dismissal of penalties under section 271D. en-us Mon, 17 Apr 2006 00:00:00 +0530 Sat, 30 Jun 2012 10:51:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=118343 The Tribunal found that penalties imposed for violating section 269SS by borrowing sums without using account payee cheques/drafts were unwarranted. The appellant's argument that borrowed amounts were necessary to clear cheques and avoid legal consequences was accepted. The Tribunal recognized the intertwined nature of the appellant and its Director in financial matters, emphasizing the lack of a clear distinction between the company and its management. Considering the intent behind the provision to prevent tax evasion, the Tribunal concluded that the transactions did not violate section 269SS, leading to the dismissal of penalties under section 271D. Case-Laws Income Tax Mon, 17 Apr 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=118343