Assessing Officer levied  penalty  under section 271D for having received loan in cash which was utilized for purchase of land in violation of provisions of section 269SS of the Act.  Commissioner (Appeals) held that  no cash loan was actually received by assessee in course of transaction remanded matter to Assessing Officer.  On appeal by revenue, both Tribunal and High Court upheld order of Commissioner (Appeals) Revenue filed a Special Leave Petition before Supreme Court on the ground that penalty is  leviable under section 271D where transfer of money had taken place through journal entries. On the facts the Assessing Officer in set aside proceedings held that entries made by assessee were only journal entries and therefore did not call for imposition of any penalty.  In view of subsequent turn of events, issue raised had become infructuous. (AY. 2007-08)