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VIMP Query-Final-Loan in cash = penalty?? 269ss 269t

whatsapp (stdnt) (52 Points)

25 March 2015

hey guys, plz tell me this-

i have taken a loan in cash rs.25000 in oct14 ----- this is violation of section 269ss

now i repaid (loan+intt) in march15 = 25500 ------ this is violation of 269t

what would be amount of penalty u/s 271D & 271E

ans - PENALTIES RESPECTIVELY IN 271D 271E

a. 25000 25500

b. 25000 500

c. 0 25500

d. 25000 25000 (ie no penalty for th intt amt.)

plz specify ur opinion with relevant provision of law

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10 Replies

CA PAYAL GAJJAR (Personal Practice) (150 Points)
Replied 25 March 2015

I think Answer should be :25000/25500 Sec 271D and 271E both are different sections. So, Rs.25000/- penalty for violation of sec 269ss and Rs.25500 penalty for violation of sec 269t. Sec 269t includes interest also.

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Intermediate Student (-) (644 Points)
Replied 25 March 2015

Agreed with payal. But not sure bcoz haven't seen any such case yet.

whatsapp (stdnt) (52 Points)
Replied 25 March 2015

I had a considered an opinion given in nihit jhaveri sir's book... it says....

if an amount has alrdy been subjected to panlty u/s 271D then 271E can not be levied for the same amount.

hence the penalty shud be 271d=25000 271e=500

but i could not find the legal provision/section which says this

Intermediate Student (-) (644 Points)
Replied 25 March 2015

I had also read that penalty shall be levied max of loan amount. So ur opinion may also be right but i also could not find legal provision or case. Let others may reply.