#section 269ss

No Penalty for cash loan to Sister Concerns due to business exigency

There is no dispute about the fact, that the instant cash transactions of the respondent-assessee were with the sister concern, and that, these transactions were between the family, and due to business exigency. A family transaction, between two independent assessees, based on an act of casualness, specially in a case where the disclosure thereof is contained in the compilation of accounts, and…

Amount paid by firm to partners or vice versa is not a loan

Amount paid by firm to partners or vice versa is payment to self and does not partake the character of loan or deposits in general law. Provisions of section 269SS are not applicable to such facts.

Under the general provision relating to Partnership Act that partnership firm is not a juristic person and for inter relationship different remedies are provided to enforce the rights arising out of…

Penalty Imposable on cash loan from person other than partners

M/s. Soundarya Textiles Vs. The Assistant Commissioner Of Income Tax (Kerala High Court), ITA. No. 35 of 2012, Dated – day of January, 2014.

The short facts involved in the above appeal are relating to the contribution made by 12 persons amounting to Rs. 51,20,000/- during the assessment year 2005-2006. The assessing officer found that the assessee has accepted the aforesaid amount contravening…

Section 269SS not applies to loan between firm and partners

Loan between firm and partners is out of ambit of Section 269SS

Facts of the Case- During the course of the assessment proceedings, it was found that the firm had accepted payments from the partners, during the relevant year corresponding to the Assessment Years, in cash. The details of the total amounts paid to the individual firm by the partners in all the aforesaid four appeals are as under: (…

Section 269SS not violated in accepting share application money or deposit in current account in cash

CA Prarthana JalanHon’ble Chandigarh bench has in the case of M/s Eqbal Inn & Hotels Ltd.  has held that Share Application Money or deposit in the current account cannot be included in the definition of deposit so as to trigger provisions of sec 269SS of the Income Tax Act,1961. Brief facts of the case were that the assessee company was in the business of construct ion of the hotel . The…

Section 269SS/ 269T not applies to book entries not involving cash transactions

In the instant case, the transaction in question, was not cash transaction. It was merely book entries. The CIT(A) has called Remand Record from the AO, who vide report dated 05.01.1999, confirmed that the transaction in question, by mentioning that no cash was involved. There was only adjustment entries. When that it so, then there is no violation of Section 269SS/269T of the Act. No addition is…

Budget 2014 -ECS, RTGS, NEFT etc. proposed to be allowed as permissible U/s. 269SS & 269T

Mode of acceptance or repayment of loans and deposits

ECS, RTGS and NEFT etc. are now proposed to be allowed as permissible mode to accept or repay the deposit or loan specified under section 269SS and 269T respectively.

The existing provisions contained in section 269SS of the Act, inter alia, provide that no person shall take from any other person any loan or deposit otherwise than by an…