#section 271e

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…

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: (…