So far off crisis, the latest appellant can bank upon merely their Administrators

28 Feb So far off crisis, the latest appellant can bank upon merely their Administrators

Manage your own address be same if your company we.age. Mr. Z places currency that have Mr.X and this cash is refunded by the Mr. X to your towards expiration regarding warranty months?

At that time of your time, brand new Manager of his very own fund, transferred the sum from the bank account of your own appellant team

ANS: Retentions off contractor’sbills since ‘Coverage Deposit’–whether or not deposit Depending on Con el fin de 39(c)from Due to the fact-eight Structure Contracts aforementioned numbers just like the retentions.Therefore, it is not very right to-name these safety deposits. He’s retentions.Very, withholding number out-of contractor’sbills and you may initiating him or her shortly after guarantee months does not focus condition 31(a) and/or term 30(d) from Means 3CD. Just like the money is maybe not “received”.

Although not, in the event that contractor places currency that have assessee which money is refunded because of the assessee so you can your into the expiry out-of warranty several months – term 29(a) and/or 31(b) will drawn as the amount is actually acquired.

Q.Mr. Mohan, Companion when you look at the Yards/s GSM & Lovers lead to the firm otherwise than simply because of the cheque. If or not Mr. Mohan is sign up to the company otherwise than just from the cheque?

ANS: Repayment or acknowledgment of total lovers: When the someone raises money when you look at the profit the business or withdraws a similar towards song off Rs 20,000 or in overabundance Rs 20,100000, up coming Specifications regarding point 269SS otherwise 269T should not lured while the regarding resource or detachment regarding organization cannot be known as finance or dumps. Amount paid off of the organization so you can couples otherwise the other way around fee to help you worry about and does not make the profile regarding financing otherwise deposits in general legislation. Terms off area 269SS aren’t applicable so you can such as for instance factors (CIT v. Lokhpat Flick Replace (Cinema) 304 ITR 172 (Raj.) Shrepak People vs. Dy. CIT 64 ITD 3 hundred (Ahd – Trib) 82 TTJ 549.

Q.Mr. Ramesh & Co. acquired that loan vide cheque that is Entered but not an Membership Payee cheque. Can there be any penalty you/s 271D?

Though a difference is obtainable between entered and counter payeehair-splitting on this subject isn’t rationalized at the least into the area 269SS/269T framework but is therefore justified when you look at the section forty A great(3) contex.

Q. Wether lead put of loan till payday Lebanon MO cash during the directly stored company’s checking account by the movie director is financing otherwise deposit under section 269SS?

For the Mangala Developers Pvt. Ltd. compared to. Addl CIT [ITA Nos. 1900 & 1901/Bang/2004-acquisition old 17-4-2006], this matter are believed by ITAT. The fresh new Tribunal stored that as the appellant-company and its Directors are two some other legal agencies, this new appellant try a closely stored organization whose activities is actually treated by the Administrators. Since it are short of funds in order to note that cheques given from it is actually cleared, it must continue enough harmony inside Financial.

Ans: When direct put of cash is created for the closely kept company’sbank account there would be zero contravention from point 269SS

Regardless if this is certainly regarded as researching the sum out of Director, it cannot meet the requirements due to the fact taking that loan otherwise taking the newest places in real feel(for the reason for section 269SS). The newest appellant, becoming closely stored company additionally the products are addressed by Manager, generally, he or she is one plus the exact same.

The new Bangalore Bench away from ITAT during the Sri Renukeswara Grain Mills versus. ITO(93 ITD 263) had stored in the context of section 40A(3) you to where money were created or even than just of the membership payee cheque in direct the financial institution membership of the payee, they match towards the aim of the nation’s lawmakers and no disallowance can be made lower than point 40A(3). Using the same idea, it can be opined that if direct put of cash is produced in (directly kept) company’s checking account there would be zero contravention out of section 269SS.