2025 (4) TMI 1877

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....nalty u/s. 271D of the Act. 2. At the outset itself learned counsel for the assessee pointed out that both the revenue authorities below had proceeded to levy penalty u/s. 271D of the Act and confirmed the same assuming incorrect facts. He firstly pointed out that the penalty u/s. 271D of the Act is levied for violation of the provisions of section 269SS of the Act, which he pointed out, specifies that no loan or deposit shall be taken or accepted by any person otherwise by account payee cheque or account payee bank draft. He pointed that provision of section 269SS bars acceptance of loans or deposits in cash and violation of this provision attracts penalty u/s. 271D of the Act. With respect to this position of law, there is no dispute. ....

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....or the payment received in contravention of section 269T of the Act. He, therefore, pointed out that the factual finding of the Assessing Officer was that the amount of Rs. 23,27,610/- was advances given by the assessee to farmers, which were taken back in cash in contravention of the provisions of section 269T of the Act, for which penalty u/s. 271E was leviable. He drew out attention to the provisions of section 269T, which reads as under : Mode of repayment of certain loans or deposits. 269T. 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 b....