Repayment of loan in cash whether attracts penalty u/s 269 ?

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))   (8311 Points)

15 August 2011  

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.