S.269SS not applies to transfer between two accounts by Journal Entry

Section 269SS is attracted when the loan or deposit taken or accepted otherwise than by account payee cheque or account payee bank draft and in the Explanation (iii) below Sec.2 69SS, it is mentioned that loan or deposits means “loan or deposit of money” and transfer between two accounts by way of journal entry does not imply receipt of loan or deposit in money terms. When there is no violation of Section 269SS there is no question of levy of penalty of u/s.271D. The penalty of Rs. 24,74,700/- (sic.) is thus directed to be deleted. ITAT “D” BENCH, AHMEDABAD BEFORE SHRI MUKUL Kr.SHRAWAT...