Exception to 269T

This query is : Open

Rakesh Kumar (Querist)
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20 December 2009 one of my client made a loan of Rs 100000/-to her wife which was paid back to his HUF by the wife.Both are by account payee cheques.Will it attract section 269SS or 269T?

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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21 December 2009 1. If accounts are not closed; repay the loan by HUF to wife. And then in turn; wife will pay to the client.

2. If accounts are closed; then penalty u/s 269SS or 269T can be levied on the technical grounds.

3. Practically; these types of cases are not taken for the purpose of penalty.

4. The purpose of these sections are to make the identity of the persons involved so that taxes are not avoided.

5. Looking to the genuineness of the transactions; even if penalty is imposed; the same can be appealed and positive results can be had.

CA. Vinod Pandey

CA. Vinod Pandey (Expert)
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21 December 2009 Section 269SS or 269T attract only when transaction is more than Rs.20k that too in cash. if it is through a/c payee cheque then it will not attract the said section.

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Rakesh Kumar

Rakesh Kumar (Querist)
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21 December 2009 Sir
can anybody tell about any decided cases on the subject?