Penalty U/s. 271D cannot be imposed in absence of payment in cash

CIT Vs. Apex Finlease Ltd. & Ors. (Allahabad High Court) Section 269SS does not include in its ambit where there is a transaction of loan or deposit by way of entries in the books of account by crediting or debiting the account of the other person. In other words, the provisions of section 269SS of the Act, according to us, are not attracted when there is an acknowledgement of debt by passing entry in the books of account and there is no transfer of money in cash from one person to another person by way of loan or deposit. Full Text of the High Court Judgment / Order is as follows:- Heard...