ARTICLES OF AN ADVOCATE: CASH ACCEPTANCE AGAINST TO THE PROVISION OF SEC. 271 Dwhether the assessee has accepted cash loan from M/s. Lahari Green Park, in contravention of S.269SS of the Act, so as to invite the rigour of the penal provision of S.271D of the Act. It is the case of the Department that the assessee has accepted cash loan in contravention of the provisions under S.269SS, whereas the assessee’s consistent stand has been that there was no cash loan, and whatever has happened was only by way of journal entries in the books of the firm in respect of the transactions between the proprietary concern, M/s. Lahari Green Park and the vendor, without her knowledge or involvement. This claim of the assessee that there was no cash flow between the proprietary firm and the assessee, and whatever happened was only by way of passing of journal entries in the books of the proprietary concern needs to be verified from the records of the firm. However, from the records available before us, we are not able to decide the issue as to whether the assessee has taken cash loan as stated by ITA No.1135/Hyd/2012 & CO No.129/Hyd/2012 Smt. G.Venkat Lakshmi, Hyderabad. 6 the department, or there are only journal entries as claimed by the assessee, since material to that effect have not been furnished before us. We therefore, deem it just and proper to remit the matter to the file of the Assessing Officer, to verify the fact as to whether the assessee has actually received cash loan from M/s. Lahari Green Park or there were mere journal entries to that effect. If ultimately, it is found that no cash loan was actually received by the assessee in the course of the transaction and there were only journal entries to that effect. then no penalty can be levied under S.271D of the Act. The Assessing Officer shall accordingly redecide the issue of applicability of the penal provisions of S.271D of the Act to the facts of the present case, in accordance with law, keeping in view our aforesaid direction, and after giving reasonable opportunity of hearing to the assessee.