Inside CIT compared to. R.Meters. Chidambaram Pillai 106 ITR 292(SC),this has been kept one commitment is only a collective of separate persons and not an appropriate person in itself payday loan no credit check Comstock Park. For this reason, here can not be a binding agreement regarding service into the rigid rules anywhere between a strong plus one of their people.
The fresh new terms regarding Section 269SS of your own Act does not get drawn just to possess import from amount to a loan membership when you look at the the type of guide entry
Ergo, relying on the above principle, individuals process of law has stored when from a partnership enterprise, there’s absolutely no independent identity out-of companion and you will agency and, for this reason, in which a partner got loan into the dollars out-of firm, discover zero citation out-of point 269SS to invoke penal specifications away from section 271D. CIT versus V. Sivaku] 32 taxmann 62 (Madras), CIT vsLokhpat Film Change (Cinema) 304 ITR 172 (Raj.), Shrepak Enterprises compared to DCIT 64 ITD 3 hundred (Ahd.- Trib.)
Money sum into the dollars away from someone on union agency doesn’t notice provisions regarding Point 269SS even if the count is came back toward low-approval out-of Bodies to own composition off partnership company
A plain understanding of Section 269SS of Work suggests so it relates to an excellent transactionwhere a deposit or a loan are acknowledged from the an assessee, otherwise than simply by the an account payeecheque or an account payee write. Brand new ambit of your own Area is in fact restricted to transactions of greet of cash which can be perhaps not meant to connect with instances when a debt or an accountability arises on account of guide records. Truly the only target on the section is always to prevent purchases in the currency.
This really is also obviously direct from clause (iii) of your explanation so you can Part 269SS of your Work hence talks of mortgage or put so you can suggest “loan or deposit of cash”. The latest accountability filed in the instructions of levels because of record records,we.e. crediting the fresh new membership off an event so you’re able to whom funds try payable otherwise debiting this new membership regarding aparty out-of just who funds are receivable on guides regarding accounts, is obviously outside of the ambit of your own supply out-of Section 269SS of one’s Operate, because the passageway including records does notinvolve desired of every loan or put of cash Commissioner of cash-income tax, (Central) IV vsAdinath Designers (P.) Ltd 102 taxmann 57 (SC) HC held one to acknowledgment of any get better otherwise loan by-way off record records is in infraction regarding part 269SS. CIT Vs. Around the globe Township Tactics Ltd., 367 ITR 433 (Delhi). Opposite take a look at could have been taken by Large Courtroom of Bombay inside CIT compared to Success Internationally Money (I) Ltd. 345 ITR 270 (Bombay) which held you to fees away from mortgage/put by the only debiting account through log records contravenes specifications of Area 269T.
- CIT compared to Noida Cost Link Co. Ltd. (2003) 262 ITR 260 (Del) The spot where the transaction is through a merchant account payee cheque, no fee towards the account is generated in dollars of the assessee otherwise towards the its account, no mortgage has been recognized of the assessee in the cash, as well as the percentage of Rs. 4.85 crore is made thanks to IL&FS, hence holds more 31% of your paid up money of your own assessee because of the log entries from the crediting the account of IL&FS, the brand new Hon’ble Delhi Highest Court observed one provisions from point 269SS aren’t attracted. Neither the fresh new assessee nor IL&FS got generated one payment within the cash.
- DCIT versus Forging Ltd. 25 taxmann 156 (Delhi-ITAT) Facts: This new thought to possess land are reduced so you’re able to growers through a realtor and also the agent’s membership is actually credited compliment of diary records. The amount is paid-in dollars from the representative to the producers. Kept, The expression mortgage otherwise places already been outlined so you’re able to mean mortgage otherwise put of money. The assessee hasn’t recognized people put away from courtesy money in bucks. This has credited this new account out of ‘D‘ using diary records in respect of purchase idea reduced towards the their behalf by the ‘D‘ through ‘J‘. Ergo the newest section is not applicable.