Assessee firm had availed cash loan of certain amount from one of its partners. AO held that assessee received loan in contravention to S.269SS and levied the penalty.  The assessee contended that, loan transaction between firm and partner does not come within purview of S.269SS, as they could not be treated as different entities and; secondly, due to business exigencies arising out of immediate payment to be made to a creditor, assessee was compelled to avail cash loan from its partner . The Tribunal held that from material on record, it appeared that assessee had availed cash loan from partner for making payment to creditors. Assessee had placed on record ledger account copies of two creditors in support of its claim. Further, assessee had availed cash loan from partner, with a bona fide belief that provisions of S.  269SS were not applicable in relation to transaction between firm and partner.  Accordingly the penalty levied was deleted. (AY. 2012-13)