The Order of the Court is as follows:

1. This writ petition is for writ of certiorari to quash the order of the Commissioner, Tamilnadu-II passed in his proceedings No. C. No. 1241-II(9)/1995-96 dated 15-3-1996.

2. The writ petitioner is a partnership firm assessed by the Deputy Commissioner, Special Division, Madras. The assessment of the petitioner for the assessment year 1992-93 under the provisions of the Act was completed on 17-3-1995 on a total income of Rs. 29, 89, 760 and the Assessing Officer noticed during the course of his assessment that the petitioner had repaid two loans in cash, on 8-4-1991 a sum of Rs. 46, 690 and on 15-4-1991 another sum of Rs. 50, 000. The Deputy Commissioner was of the view that there was violation of provisions of section 269T of the Income-tax Act, 1961, ('the Act') and levied penalty of Rs. 96, 690 under section 271E of the Act, after giving the petitioner an opportunity to be heard.

3. The petitioner filed a revision petition before the Commissioner under section 264 of the Act, seeking cancellation of the order of penalty levied under section 271 E. The Commissioner held that the provisions of section 269T speak of mode of repayment