COMMISSIONER OF INCOME TAX Vs. MAHESHWARI NIRMAN UDYOG

JUDGEMENT

(1.) BY filing this appeal, the CIT, Bikaner has challenged the order dt. 27th March, 2002 passed by the Tribunal, Jodhpur Bench, Jodhpur in ITA No. 2145/Jp/1996, which pertains to the asst. yr. 1993 -94, by which, the Tribunal has dismissed the appeal filed by the Revenue and confirmed the order passed by the CIT(A) -I, Jodhpur.

(2.) THE respondent -assessee is a contractor and for the purpose of his business, he had taken certain loans from its sister concern. The particulars of loan taken by the respondent -assessee on various dates find place in the order of the AO and the same are as under:

(3.) LEARNED Counsel Mr. K.K. Bissa submitted that even though it is true that the respondent -assessee had taken loan from its sister concern, but the acceptance of the said amount is in violation of Section 269SS of the Act. If any amount more than Rs. 20,000 is accepted, the same has to be accepted by cheque or bank draft and not by cash. Learned Counsel further submitted that therefore, it is a clear case of violation of said provisions and, therefore, the first authority was justified in imposing the penalty.