At this point of drama, the fresh new appellant normally financial on simply the Directors

Carry out their answer be exact same in the event the contractor i.age. Mr. Z deposits currency which have Mr.X hence cash is reimbursed by Mr. X to your on the expiry away from guarantee period?

At that time of time, the Director from his very own fund, placed the sum on the bank account of one’s appellant business

ANS: Retentions out of contractor’sbills just like the ‘Defense Deposit’–if or not deposit Depending on Para 39(c)away from Given that-seven Framework Deals aforesaid quantity as retentions.For this reason, this isn’t extremely right to call this type of coverage deposits. He is retentions.Therefore, withholding wide variety away from contractor’sbills and you may launching her or him just after warranty months cannot appeal term 29(a) and/or clause 31(d) out of Setting 3CD. Due to the fact money is not “received”.

Although not, if the builder places currency with assessee and this money is refunded from the assessee to him to your expiration from assurance several months – clause 30(a) and/otherwise 31(b) commonly attracted since count is obtained.

Q.Mr. Mohan, Companion inside M/s GSM & Partners resulted in the organization if you don’t than just by cheque. If or not Mr. Mohan normally contribute to the firm if you don’t than simply from the cheque?

ANS: Cost or receipt from total people: In the event the someone brings up investment inside the money in the organization otherwise withdraws an equivalent into the track of Rs 20,100000 or even in excess of Rs 20,100, next Conditions off area 269SS or 269T will not drawn because introduction of investment or detachment from agency can’t be called as funds or deposits. Amount reduced because of the company to help you people otherwise the other way around commission to help you mind and does not make profile from financing otherwise places generally laws. Provisions out-of point 269SS aren’t applicable to such as for example affairs (CIT v. Lokhpat Film Change (Cinema) 304 ITR 172 (Raj.) Shrepak Businesses versus. Dy. CIT 64 ITD 3 hundred (Ahd – Trib) 82 TTJ 549.

Q.Mr. Ramesh & Co. gotten financing vide cheque that is Crossed although not an Account Payee cheque. Will there be people penalty you/s 271D?

Regardless of if a big difference is available anywhere between entered and you will stop payeehair-breaking about this isn’t rationalized at least from inside the section 269SS/269T context but is so justified within the section 40 A beneficial(3) contex.

Q. Wether lead put of money from inside the directly kept business’s family savings by the director try financing otherwise put under point 269SS?

From inside the Mangala Developers Pvt. Ltd. compared to. Addl CIT [ITA Nos. 1900 & 1901/Bang/2004-order old 17-4-2006], this problem try sensed from the ITAT. The new Tribunal kept one whilst the appellant-organization and its own Directors are a couple of more courtroom entities, the fresh new appellant is a directly kept organization whoever items are addressed of the Administrators. Because was short of fund and to note that cheques awarded by using it are removed, it needed to continue enough balance within the Lender.

Ans: When lead deposit of money is created within the closely held company’sbank membership there would be no contravention from section 269SS

Regardless of if this will be regarded as acquiring the sum of the out-of Manager, it cannot be considered as getting that loan otherwise recognizing the newest places in its correct sense(into the reason for area 269SS). The newest appellant, getting directly stored team therefore the points getting handled of the Movie director, in general, he could be one to in addition to same.

The Bangalore Counter off ITAT inside the Sri Renukeswara Grain Mills vs. ITO(93 ITD 263) had held in the context of area 40A(3) you to definitely in which the money are manufactured otherwise than from the membership payee cheque directly in the financial institution account of payee, it meets to the intention of our elected representatives with no disallowance can be produced less than area 40A(3). Using the exact same idea, it can be opined that in case head deposit of money are produced in (closely kept) businesses bank account there would be no contravention out-of area 269SS.

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