In the books of A
A is a partnership firm
Opening Balance under the head "Loans & Advances is Rs.150000 in the name of B.
From B It had received in repayment of the same in cash but less than RS.20000 in the current year.
It had also received an advance by A/c Payee Cheque of a sum of Rs.176000 from B.
So, my queryis whether it attracts the penal provisions of Sec.269 for not accepting repayments otherwise than account payee cheque for A ?
Hoping for quick reply.
269 SS or T would not be applicable in this case da. Firm is neither accepting fresh loan or repaying an loan taken. If at all repayment is made by B to firm, penal provisions applicable to B, and not firm. Even if u give loan by cash, no penal provisions on you, it is applicable for acceptor. and if such acceptor has repaid loan in cash, even then provisions applicable to acceptor of loan.
applicability of section 269SS is when you have borrowed money
applicability of section 269T is for the repayment of money you have borrowed
since in this situation A is the lender there is no applicability of the aforesaid two sections on A.
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