Please help on applicablity of section 269ss/t

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CA Abhishek Pal (Querist)
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28 July 2014 We have received ADVANCE FROM CUSTOMERS for sale of flats/units through BANK but due to cancellation of deal with some clients, we had repaid them partly through CASH amount 150000/- which was exceeds 20000/-, thus whether Sec 269SS/T is applicable on REPAYMENT OF ADVANCE FROM CUSTOMERS..?? Please make clarification on this.

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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28 July 2014 In my opinion, section 269T will not apply in your case since it applies only in case of repayment of a loan or deposit. In your case you have only received advance from customers for sale of flats which does not come under either loan or deposit. Also loan or deposit is defined in the section itself to mean any loan or deposit which is repayable after notice or after a period, though in case of company it is also provided that it includes loan or deposit of any nature.

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CA Abhishek Pal

CA Abhishek Pal (Querist)
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28 July 2014 Thanks Mr. Abhishek Goyal for clarify me the provision. Actually i was also confuse that, Though we have a genuine case but... Will it not be a practice to laundering the black money by accepting money in cash/bank and make payment through bank /cash and give the name of Advance fromn Customer. Whether ITO can raise question on our transaction...though we have genuine transactions

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CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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30 July 2014 No Sir I don't think so. Even if such a case arises you can prove the receipt of advance received from customers through entries made in the books of account. You must also be having agreement to sell with customers containing all the terms and conditions. And you can also produce confirmations, PAns of the customer to the ITO if required.