07 January 2012
Please guide me on following questions:
1. M/s ABC has taken cash loan of Rs.15000 from Rakesh on 15.04.2011. M/s ABC repaid it to Rakesh in cash on 31.05.2011. Further M/s ABC has taken cash loan of Rs.160000.00 on 20.06.2011 from Rakesh and repaid it to Rakesh in cash on 31.08.2011. Whether is it amounts to violation of Section 269SS and 269T. 2. M/s XYZ has taken cash loan of Rs.15000 from Rakesh on 10.04.2010. M/s XYZ repaid it to Rakesh in cash on 31.01.2011. Further M/s XYZ has taken cash loan of Rs.160000.00 on 20.06.2011 from Rakesh and repaid it to Rakesh in cash on 31.08.2011. Whether is it amounts to violation of Section 269SS and 269T. 3.M/s XYZ has taken cash loan of Rs.15000 from Rakesh on 10.04.2010. M/s XYZ repaid it to Rakesh in cash Rs.10000on 31.01.2011. Balance as on 31.03.2011 is Rs.5000.00 Further M/s XYZ has taken cash loan of Rs.160000.00 on 20.06.2011 from Rakesh and repaid it to Rakesh in cash on 31.08.2011. Whether is it amounts to violation of Section 269SS and 269T.
It is requested to elaborate the answer substanting with relevant Section.
07 January 2012
Section 269SS provides, inter alia, that
"No person shall, after the 30th day of June, 1984, take or accept from any other person any loan or deposit otherwise than by an account payee cheque or account payee bank draft if the amount of such loan or deposit or the aggregate amount of such loan and deposit exceeds Rs. 20,000/-"
Similarly Section 269T prohibits repayment of loan otherwise than by an account payee cheque.
In the first case M/S ABC has violated the provisions of section 269SS and 269T
07 January 2012
In the second case, the loan of Rs. 15,000/- taken and repaid in cash does not violate provisions of Section 269SS and 269T. However, the loan of Rs. 1,60,000/- taken subsequently and repaid in cash will be in violation of Section 269SS and Section 269T
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