269ss on advance recieved for sale of car

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gautam thakur (Querist)
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31 January 2016 dear professionals, I wanted to ask whether advance received for sale of car from relatives in personal capital account of proprietor subject to 269SS . since deal was cancelled so advance was returned, will this be subject to 269T ?

Ganeshbabu K

Ganeshbabu K (Expert)
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01 February 2016 1)No disallowance u/s 269SS.Advance received against agreement of sale of goods is not a loan or deposit.

2)No disallowance u/s 269T .Because,

Explanation (iii) contains a definition of theterm “loan or deposit” for the purposes of section 269T. Accordingly, “loan or deposit” means any deposit of money which is repayable after notice or repayable after a period and, in the case of a person other than a company, includes loan or deposit of any nature. As such, all repayments made to any person where the loan or deposit along with interest is Rs.20,000 or more are to be reported under this sub-clause, even though the amount of repayment may be less than Rs.20,000.

your transaction not covered,hence 269T will not attract.