I.P. MUKERJI, J.

1. On 12th August, 2008, and 13th August, 2008 a division bench of this court admitted the above two appeals under Section 260A of the Income Tax Act, 1961 on the following substantial question of law:

“Whether on the facts and circumstances of the case, the Learned Tribunal was justified in law in holding that contravention of Section 269SS by the assessee cannot be a reason for re-opening the assessment under Section 147 of the Act?”

2. Section 269SS is as follows:

“269 SS. Mode of taking or accepting certain loans and deposits and specified sum. No person shall, after the 30th day of June, 1984 , take or accept from any other person (hereafter in this section referred to as the depositor), any loan or deposit otherwise than by an account payee cheque or account payee bank draft if,-

(a) The amount of such loan or deposit or the aggregate amount of such loan and deposit; or

(b) On the date of taking or accepting such loan or deposit, any loan or deposit taken or accepted earlier by such person from the depositor is remaining unpaid (whether

re-payment has fallen due or not), the amount or the aggregate amount remaining unpaid; or

(c) The amount or the aggreg