Inside the CIT compared to. Roentgen.Meters. Chidambaram Pillai 106 ITR 292(SC),it’s been stored one union is a collective out of independent persons and never a legal member of alone. Thus, around can not be an agreement of solution in the rigorous rules ranging from a company and something of its partners.
New arrangements out of Part 269SS of one’s Work doesn’t lured simply having transfer of total that loan account for the the type of publication entry
Therefore, relying on the aforementioned principle, various process of law possess stored whenever regarding a partnership company, there is no independent label away from spouse and agency and, thus, in which someone got mortgage for the cash out-of company, there was no solution out-of section 269SS to be able to invoke penal conditions from point 271D. CIT against V. Sivaku] thirty-two taxmann 62 (Madras), CIT vsLokhpat Motion picture Change (Cinema) 304 ITR 172 (Raj.), Shrepak Businesses versus DCIT 64 ITD three hundred (Ahd.- Trib.)
Money share in the bucks away from a partner regarding union enterprise will not appeal terms out of Part 269SS even when the amount are returned for the low-acceptance of Authorities having structure from connection corporation
An ordinary studying of your own Part 269SS of the Work means which relates to good transactionwhere a deposit otherwise financing try accepted from the a keen assessee, if not than just because of the an account payeecheque or a free account payee write. The new ambit of the Point is actually limited by transactions of invited of money and is maybe not meant to apply to cases where an obligations otherwise a responsibility comes up because of book entries. Really the only object regarding the area should be to avoid deals within the currency.
This is and additionally clearly explicit of clause (iii) of the reasons so you can Part 269SS of one’s Operate and therefore describes financing otherwise deposit so you’re able to suggest “loan otherwise deposit of cash”. New responsibility submitted in the books regarding account using diary entries,we.elizabeth. crediting brand new membership out-of an event so you’re able to whom funds was payable or debiting this new membership regarding aparty from which funds is actually receivable on instructions regarding account, is clearly beyond your ambit of your own supply out of Point 269SS of your Act, once the passage such as for example records do notinvolve desired of every mortgage or deposit of cash Administrator of cash-tax, (Central) IV vsAdinath Developers (P.) Ltd 102 taxmann 57 (SC) HC kept you to definitely acknowledgment of every progress or financing by-way out-of journal records is within infraction of area 269SS. CIT Compared to. Worldwide Township Programs Ltd., 367 ITR 433 (Delhi). Opposite glance at could have been removed because of the Highest Judge regarding Bombay in the CIT against Achievements Global Funds (I) Ltd. 345 ITR 270 (Bombay) for which held you to definitely installment from mortgage/put from the just debiting membership as a result of journal records contravenes terms out of Part 269T.
- CIT versus Noida Toll Bridge Co. Ltd. (2003) 262 ITR 260 (Del) In which the exchange is through an account payee cheque, no fee towards the account is made into the bucks by the assessee otherwise into their part, zero financing has been accepted of the assessee inside the dollars, as well as the payment regarding Rs. 4.85 crore is made through IL&FS, and this holds more 31% of your paid-up financial support of your own assessee by diary entries because of the crediting this new membership regarding IL&FS, brand new Hon’ble Delhi High Judge seen you to definitely terms away from part 269SS are not lured. Neither the new assessee nor IL&FS got made one percentage within the bucks.
- DCIT against Forging Ltd. 25 taxmann 156 (Delhi-ITAT) Facts: The newest idea to possess land try paid off so you can producers compliment of a realtor plus the agent’s account are credited compliment of diary entries. The quantity is actually paid in cash by broker for the growers. Stored, The term mortgage or places been discussed in order to suggest $255 title loans online same day Maryland financing otherwise deposit of money. The assessee hasn’t recognized people deposit out-of compliment of cash in dollars. It’s paid brand new membership regarding ‘D‘ compliment of log records in respect from purchase attention reduced for the the account by the ‘D‘ through ‘J‘. For this reason the new area is not appropriate.
