AI Drafter 
TaxTMI 
TaxTMI 
2018 (5) TMI 1731
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....in Road, Thanthai Periyar Nagar, Pondicherry 605 005, on 8.9.2011 and books of accounts and supporting documents were impounded under Section 133A(3) of the IT Act. 4. The survey revealed that the said A.Kannan carried on business of lending, even though he had no licence to do so. From the records maintained by the said A.Kannan, it was noticed that the assessee had obtained and also repaid loans exceeding Rs. 20,00,000/- in cash. It further appears that the Assessing Officer found that the loans and repayment had not been accounted for in the regular books of accounts of the assessee or the firm in which the assessee was partner and even if so recorded, no business exigency and urgency had been established for following a prolonged and persistent system of accepting and repaying loans only in cash. 5. Sections 269SS, 269T, 271D and 271E of the IT Act provide as follows: "Section 269SS. Mode of taking or accepting certain loans, deposits and specified sum. No person shall take or accept from any other person (herein referred to as the depositor), any loan or deposit or any specified sum, otherwise than by an account payee cheque or account payee bank draft ....
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.... transfer of an immovable property, whether or not the transfer takes place. Section 269T. Mode of repayment of certain loans or deposits. No branch of a banking company or a co-operative bank and no other company or co-operative society and no firm or other person shall repay any loan or deposit made with it or any specified advance received by it otherwise than by an account payee cheque or account payee bank draft drawn in the name of the person who has made the loan or deposit or paid the specified advance, or by use of electronic clearing system through a bank account if (a) the amount of the loan or deposit or specified advance together with the interest, if any, payable thereon, or (b) the aggregate amount of the loans or deposits held by such person with the branch of the banking company or co-operative bank or, as the case may be, the other company or co-operative society or the firm, or other person either in his own name or jointly with any other person on the date of such repayment together with the interest, if any, payable on such loans or deposits, or (c) the aggregate amount of the specified advances received by such pers....
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.... 271E. Penalty for failure to comply with the provisions of section 269T. (1) If a person repays any loan or deposit or specified advance referred to in section 269T otherwise than in accordance with the provisions of that section, he shall be liable to pay, by way of penalty, a sum equal to the amount of the loan or deposit or specified advance so repaid. (2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner." 6. As observed above, in course of inspection of the books of A.Kannan, it was found that the appellant assessee had repaid loan of Rs. 20,00,000/- in cash to A.Kannan on various dates. 7. Notice under 271E read with Section 269T of the IT Act was served on the appellant assesee on 2.12.2012. The assessee duly filed his reply before the Assessing Officer, but the explanation offered was not accepted. 8. The Assessing Officer found that the fact that the assessee had taken and repaid loans in cash was admitted. The Assessing Officer observed that the loans and repayments had not been accounted for in the regular books of accounts of the assessee or the firm in which the assessee was a partner and even if so recor....
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....g Officer by sustaining the penalty levied under section 271E and 271D of the Act for both the above assessment years. Thus, the ground raised by the Revenue stands allowed." 12. The learned counsel appearing on behalf of the appellant assessee, Mr.A.S.Sriraman, has strenuously argued that the learned Tribunal breached judicial discipline in ignoring the orders of other Benches of coordinate strength of the learned Tribunal. 13. However, in our considered opinion, every assessment year is different and a factual finding pertaining to any one assessment does not operate as a binding precedent in respect of subsequent assessment years. The orders of other Benches of coordinate strength of the learned Tribunal pertaining to other assessment years and/or to other assessees would not operate as a precedent. 14. In this context, it would perhaps not be out of context to note that statutory provisions which prohibit acceptance of repayment of loans in cash are binding on all Income Tax payees and breach thereof attracts the penal provisions of the IT Act, and renders an assessee taking or repaying loans exceeding Rs. 20,000/- liable to penalty. 15. Perhaps interference on the ....