https://www.taxtmi.com/caselaws?id=465880 Interpretation of the second proviso to section 269SS clarifies that cash loans between persons who both derive agricultural income and have no other income chargeable to tax are excluded from the prohibition on cash borrowings; where an assessees non-agricultural income is below the taxable threshold it is not "chargeable to tax" and the exclusion applies, and unchallenged assertions that lenders lacked taxable income are accepted. Consequently the statutory prohibition in section 269SS did not apply in the case described and the penalty imposed under the companion penalty provision was held unsustainable, allowing the taxpayers appeal. en-us Thu, 11 Aug 2022 00:00:00 +0530 Tue, 13 Jan 2026 15:01:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465880 Interpretation of the second proviso to section 269SS clarifies that cash loans between persons who both derive agricultural income and have no other income chargeable to tax are excluded from the prohibition on cash borrowings; where an assessees non-agricultural income is below the taxable threshold it is not "chargeable to tax" and the exclusion applies, and unchallenged assertions that lenders lacked taxable income are accepted. Consequently the statutory prohibition in section 269SS did not apply in the case described and the penalty imposed under the companion penalty provision was held unsustainable, allowing the taxpayers appeal. Case-Laws Income Tax Thu, 11 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465880