Inside the CIT against. Roentgen.Meters. Chidambaram Pillai 106 ITR 292(SC),it has been held you to definitely partnership is a collaborative off independent people and never an appropriate member of alone. Hence, truth be told there can’t be an agreement away from service into the tight legislation ranging from a strong and another of its people.
The latest arrangements regarding Area 269SS of your Work does not get attracted only to have import off add up to a loan membership from inside the the form of guide admission
Therefore, counting on these concept, some process of law keeps kept when out of a partnership organization, there’s absolutely no independent label out of companion and you may corporation and you may, thus, where somebody grabbed loan within the cash of firm, discover no violation regarding part 269SS so as to invoke penal conditions regarding area 271D. CIT against V. Sivaku] 32 taxmann 62 (Madras), CIT vsLokhpat Film Exchange (Cinema) 304 ITR 172 (Raj.), Shrepak Companies versus DCIT 64 ITD 3 hundred (Ahd.- Trib.)
Money sum inside cash out of somebody in the relationship company doesn’t interest conditions out-of Area 269SS even when the count is actually came back into low-acceptance out-of Authorities for composition away from relationship agency
A plain studying of your Point 269SS of your own Act suggests which pertains to a transactionwhere a deposit otherwise a loan are recognized because of the an assessee, if you don’t than because of the a free account payeecheque otherwise an account payee write. The latest ambit of your own Area is in fact limited to transactions involving greet of money and that is perhaps not intended to affect cases where an obligations otherwise a responsibility comes up because of guide entries. The actual only real object regarding the part is to try to end transactions for the money.
This is also obviously explicit away from clause (iii) of reason to help you Section 269SS of your own Operate hence describes loan or put in order to mean “loan payday loans Detroit Lakes Minnesota online otherwise put of money”. The fresh new responsibility registered regarding the courses out of account compliment of record entries,we.e. crediting this new membership from a celebration in order to which monies try payable otherwise debiting the new membership out-of aparty from just who monies is actually receivable regarding guides away from account, is really outside the ambit of your own supply regarding Part 269SS of your Act, because passageway such as for example records do notinvolve greet of any loan otherwise put of cash Commissioner of cash-tax, (Central) IV vsAdinath Developers (P.) Ltd 102 taxmann 57 (SC) HC stored you to acknowledgment of any improve otherwise financing by way off record records is actually infraction away from part 269SS. CIT Versus. Global Township Systems Ltd., 367 ITR 433 (Delhi). Reverse view could have been pulled of the High Courtroom out-of Bombay inside the CIT vs Triumph Around the globe Loans (I) Ltd. 345 ITR 270 (Bombay) for which kept that cost of loan/deposit by merely debiting membership because of diary records contravenes provisions out-of Point 269T.
- CIT vs Noida Cost Link Co. Ltd. (2003) 262 ITR 260 (Del) Where the exchange is by a free account payee cheque, no commission on the account is generated inside dollars because of the assessee or with the the behalf, zero mortgage could have been accepted of the assessee into the cash, and the payment regarding Rs. 4.85 crore has been made by way of IL&FS, and this keeps more than 31% of paid-up funding of assessee because of the log entries by the crediting this new account of IL&FS, new Hon’ble Delhi High Legal seen one arrangements away from area 269SS aren’t lured. Neither the fresh assessee neither IL&FS got made any commission when you look at the dollars.
- DCIT compared to Forging Ltd. 25 taxmann 156 (Delhi-ITAT) Facts: The new said to own land was repaid so you can growers by way of an agent and also the agent’s membership try credited through record entries. The total amount was paid in dollars of the agent on producers. Kept, The expression loan or deposits already been outlined so you can mean financing otherwise deposit of money. New assessee has never accepted any put off compliment of cash in dollars. This has credited the latest account away from ‘D‘ through journal records in respect away from get consideration reduced on the the account of the ‘D‘ compliment of ‘J‘. Hence the new area isn’t applicable.