Ashok Bhan, J.

1. THESE appeals are directed against the consolidated order of the single judge in W. Ps. Nos. 30318 of 1994 and 33115 of 1995 (see [1999] 239 ITR 694), dismissing the writ petitions thereby upholding the vires of Section 269SS of the Income-tax Act, 1961 (for short, "the Act"). On the merits the appellant has been permitted to file the appeal provided under the statute within four weeks from the date of the judgment without objection to the limitation.

Facts :

2. THE appellant-company is regularly assessed to tax under the relevant provisions of the Act. For the assessment year 1991-92, the appellant was assessed at nil income vide order of assessment dated February 21, 1994. While concluding the assessment, the Assessing Officer, initiated proceedings under Section 271D which provides for levy of penalty for infraction of Section 269SS. Section 269SS penalises the borrower for obtaining cash loan of Rs. 20,000 or more.

The appellant had borrowed the following sums of money from its directors during the accounting year ending on March 31, 1991.

Sri K. E. Somashekar Rs. 7.40 lakhs

Sri S. Rajashekar Rs. 4.70 lakhs

Sri S. Chandrashekar Rs. 40,000

3. THE amounts