The plain language of 269SS mentions " no person shall take or accept any loan or deposit otherwise than by crossed account payee cheque or account payee bank draft "
Now my question is if i am giving loan exceeding Rs.20000 by other then a/c payee cheque whether i am violating provision of 269SS.
As per plain language i am not liable but my doubt arises due to
a. The heading of chapter XX-B is " Requirement as to mode of Acceptance, Payment or Repayment in certain cases to counteract evasion of tax "
so in above cases payment word mentioned in headin of chapter which may be caution
b. as per provisio provided in the section "this provision is not applicable to any loan or deposit taken or accepted from or any loan or deposit taken or accepted by various persons (governemnt, bank etc )"
In above case acceptance criteria also exempted
So it seems that even payer is also covered under violation
Kindly guide me in this regard.
Thanks
CA, Krunal Mehta
CAclubindia
