Chamundi Granite(P) Ltd. vs Deputy Commissioner Of Income Tax & Anr.

Whether Section 269SS of the Income Tax Act, 1961, which penalizes cash loans of Rs. 20,000 or more, is constitutionally valid under Article 14 and within Parliament's legislative competence under Entry 82 of the Union List --- Held Yes. Whether the penalty levied under Section 271D for violating Section 269SS was justified on merits --- Not addressed, as the appellant was relegated to statutory appeal.