Applicability of section 269ss of income tax act 1961

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Ritika (Querist)
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25 December 2013 Is sectin 269ss applicable to cash advance given (in excess of RS. 20000/-) to transporter.E.g. Bill for the m/o july 2013 for Rs. 185090/- is received on 31/07/2013 but we have given cash advances to transporter of RS. 25000/- on 5/7/2013, Rs. 38000/- on 17/07/2013 & RS. 45000/- on 25/07/2013.So my question is whether sec. 269SS applicable to these cash advances or not . Does advance come under the definition of "Loan & Deposit " as given u/s 269S?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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25 December 2013 yes since there is no exception given it is applicable to transporter if it was advanced and will be repaid back.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 December 2013 Section 269SS is NOT applicable to advances given for expenses.

However, Section 40A(3A) will be applicable and the expenditure will be disallowed if the advance exceeds Rs. 20,000 or 35,000 in case of transporter.

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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25 December 2013 if advances are given in the form of loan to be repaid back then it is covered as it will not be an exp.

Ritika

Ritika (Querist)
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25 December 2013 what if adjusted against bill in this case???
is section 269ss still applicable?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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25 December 2013 Section 269SS is NOT applicable in this case.

However, Section 40A(3A) is attracted and expense will be disallowed.

Ritika

Ritika (Querist)
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