loan by cash

Are you the borrower? Please post complete facts.

The profession and reasons for obtaining a loan and how it was utilized is also material as that IT clause is also having exemptions.  The lender may have violated an IT clause and may be held responsible for such violation under IT Act, but a borrower can not play the game and evade such payment borrowed by him.  At the most lender may be questioned the source of that amount, and there are Chartered Accountants to show such entries to claim exemptions or to avoid such disclosures.

There is no influence of such clauses between a lender and a borrower.