2017 (10) TMI 1321

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....of the Act is imposed in a case where there is acceptance of loan or deposit in contravention of section 269SS of the Act which lays down that no loan or deposit can be taken in cash, where the loan or deposit is in excess of Rs. 20,000/- or more. 3. The admitted factual position is that the assessee is the wife of Fafiqul Hassan, sole proprietor of 'Techno Industry'. The assessee is also carrying on business under the name and style 'Tuhinara Enterprise'. The assessee's husband wanted to purchase a property in the name of the assessee and he deposited in the savings bank account of the assessee a total sum of Rs. 34,00,000/- on various dates in cash and each deposit was in excess of Rs. 20,000/-. The negotiations for purchase of the pro....

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.... in the case of Dr.B.G.Panda are identical . The Tribunal in the aforesaid case held as follows :- "Section 269SS is applicable to the deposits or loan. It is true that both in the case of a loan and in the case of a deposit, there is a relationship of debtor or creditor between the party giving money and the party receiving money. In the case of deposit. the delivery of money is usually at the instance of the giver and it is for the benefit of the person who deposits the money and the benefit normally being the earning of interest from the party who customarily accepts deposit. In the case of loan it is the borrower at whose instance and for whose needs the money is advanced. The borrowing is primarily for the benefit of a borrower althoug....