Section 276DD — Failure to comply with the provisions of section 269SS
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: OMITTED. Repealed by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1 April 1989.
Finance Act, 2026: Not amended by the Finance Act, 2026 (nothing subsists to amend).
Mechanism: Historic offence for accepting loans/deposits in cash in breach of section 269SS; replaced by the civil penalty under section 271D.
Litigation profile: Spent/omitted — reproduced for completeness.
A. COMMENTARY
Decriminalisation of the cash-loan default
Section 276DD made it a criminal offence to accept any loan or deposit in contravention of section 269SS (which bars acceptance of loans/deposits of specified amounts otherwise than by account-payee cheque/draft/electronic mode). It was omitted by the Direct Tax Laws (Amendment) Act, 1987 with effect from 1 April 1989, as part of a deliberate shift from prosecution to civil penalty: the default is now visited with a penalty equal to the amount of the loan/deposit under section 271D. The section is reproduced, with its omission note, only to keep the numbering intact.
Practitioners should locate the live consequence of a section 269SS breach in section 271D (penalty), read with section 273B (reasonable cause). The criminal route under section 276DD has had no operation since 1 April 1989.
B. STATUTORY TEXT (verbatim — pre-Finance Act, 2026 text)
Reproduced verbatim as an omission note; the substantive section was repealed with effect from 1 April 1989 and is not affected by the Finance Act, 2026.
Failure to comply with the provisions of section 269SS.
276DD. [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
C. AUTHORITIES
No authorities
As an omitted provision, section 276DD has no live jurisprudence. The current law on cash loans/deposits is governed by sections 269SS and 271D; see the Chapter XX-B volume of the Treatise.
CHAPTER XXII — OFFENCES AND PROSECUTIONS
Section 276DD — Failure to comply with the provisions of section 269SS
Case Laws & Commentary — Income-tax Act, 1961 (as amended by the Finance Act, 2026) — bharattax.co Treatise
Status: OMITTED. Repealed by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1 April 1989.
Finance Act, 2026: Not amended by the Finance Act, 2026 (nothing subsists to amend).
Mechanism: Historic offence for accepting loans/deposits in cash in breach of section 269SS; replaced by the civil penalty under section 271D.
Litigation profile: Spent/omitted — reproduced for completeness.
A. COMMENTARY
Decriminalisation of the cash-loan default
Section 276DD made it a criminal offence to accept any loan or deposit in contravention of section 269SS (which bars acceptance of loans/deposits of specified amounts otherwise than by account-payee cheque/draft/electronic mode). It was omitted by the Direct Tax Laws (Amendment) Act, 1987 with effect from 1 April 1989, as part of a deliberate shift from prosecution to civil penalty: the default is now visited with a penalty equal to the amount of the loan/deposit under section 271D. The section is reproduced, with its omission note, only to keep the numbering intact.
Present law — section 271D
Practitioners should locate the live consequence of a section 269SS breach in section 271D (penalty), read with section 273B (reasonable cause). The criminal route under section 276DD has had no operation since 1 April 1989.
B. STATUTORY TEXT (verbatim — pre-Finance Act, 2026 text)
Reproduced verbatim as an omission note; the substantive section was repealed with effect from 1 April 1989 and is not affected by the Finance Act, 2026.
Failure to comply with the provisions of section 269SS.
276DD. [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
C. AUTHORITIES
No authorities
As an omitted provision, section 276DD has no live jurisprudence. The current law on cash loans/deposits is governed by sections 269SS and 271D; see the Chapter XX-B volume of the Treatise.