Section 276E criminalised the repayment of any loan or deposit in contravention of section 269T (which requires repayment of specified amounts otherwise than by account-payee cheque/draft/electronic mode). Like its sibling section 276DD, it was omitted by the Direct Tax Laws (Amendment) Act, 1987 with effect from 1 April 1989 in favour of a civil penalty. It is reproduced with its omission note to preserve the chapter's numbering.
A contravention of section 269T now attracts a penalty equal to the amount repaid under section 271E, subject to the reasonable-cause defence in section 273B. The prosecution route under section 276E has been inoperative 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Reproduced verbatim as an omission note; the substantive section was repealed with effect from 1 April 1989 and is not affected by the Finance Act, 2026.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 269T.
276E. [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
C. AUTHORITIES
No authorities
As an omitted provision, section 276E has no live jurisprudence. The current law on repayment of loans/deposits is governed by sections 269T and 271E; see the Chapter XX-B volume of the Treatise.
CHAPTER XXII — OFFENCES AND PROSECUTIONS
Section 276E — Failure to comply with the provisions of section 269T
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 Repealed by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1 April 1989.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 repaying loans/deposits in cash in breach of section 269T; replaced by the civil penalty under section 271E.
Litigation profile: Spent/omitted — reproduced for completeness.
A. COMMENTARY
The repayment counterpart of section 276DD
Section 276E criminalised the repayment of any loan or deposit in contravention of section 269T (which requires repayment of specified amounts otherwise than by account-payee cheque/draft/electronic mode). Like its sibling section 276DD, it was omitted by the Direct Tax Laws (Amendment) Act, 1987 with effect from 1 April 1989 in favour of a civil penalty. It is reproduced with its omission note to preserve the chapter's numbering.
Present law — section 271E
A contravention of section 269T now attracts a penalty equal to the amount repaid under section 271E, subject to the reasonable-cause defence in section 273B. The prosecution route under section 276E has been inoperative 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 269T.
276E. [Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.]
C. AUTHORITIES
No authorities
As an omitted provision, section 276E has no live jurisprudence. The current law on repayment of loans/deposits is governed by sections 269T and 271E; see the Chapter XX-B volume of the Treatise.