https://www.taxtmi.com/caselaws?id=465873 Statutory prohibition on acceptance of loans otherwise than by account payee cheque or draft requires an actual loan or deposit; mere acknowledgement by journal or book entry without transfer of money, repayment terms, interest, or other loan conditions does not constitute a loan or deposit for the statutory prohibition. Prior authorities treat book-entry acknowledgements as outside the scope of the prohibition, and penal provisions are construed strictly; where transactions are bona fide and lack mens rea or tax-evasion motive, discretion exists against imposing penalty. Consequence: penalty imposition for such book-entry acknowledgements is not justified. en-us Thu, 09 Feb 2012 00:00:00 +0530 Tue, 13 Jan 2026 17:51:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465873 Statutory prohibition on acceptance of loans otherwise than by account payee cheque or draft requires an actual loan or deposit; mere acknowledgement by journal or book entry without transfer of money, repayment terms, interest, or other loan conditions does not constitute a loan or deposit for the statutory prohibition. Prior authorities treat book-entry acknowledgements as outside the scope of the prohibition, and penal provisions are construed strictly; where transactions are bona fide and lack mens rea or tax-evasion motive, discretion exists against imposing penalty. Consequence: penalty imposition for such book-entry acknowledgements is not justified. Case-Laws Income Tax Thu, 09 Feb 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465873