Vinod (CA in Practice) (445 Points)
18 February 2013Dear friends,
My doubt is whether fresh loans given by a firm (Not a repayment at all - This is the first transaction with tat party) is covered under Stc. 269T ? Because, Sec. 269T deals with the "repayment of loans"....
Please share your views..
Thanks in advance...
CA Suraj Lakhotia
(IndigoLearn)
(4898 Points)
Replied 18 February 2013
269 SS deals with acceptance of loan and 269T deals with repayment.
These sections do not deal with granting of loan.
NEHA GOEL
(Partner)
(35 Points)
Replied 21 February 2013
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The following transaction took place between A & B. A made some cash expenses on behalf of B (e.g. Rs.100000/-). Now B treats it as a loan received from A and repays the amount to A at a later date through an account payee cheque.Is there any violation of 269SS & 269T? |
CA Suraj Lakhotia
(IndigoLearn)
(4898 Points)
Replied 21 February 2013
"loan or deposit" means loan or deposit of money.
Provisions of section 269SS and 269T are not applicable in case where there are journal entries and payment was ultimately paid through account payee cheque. Commissioner Of Income-Tax vs Noida Toll Bridge Co. Ltd. (2003) 184 CTR Del 266. Further acknowledgement of debt by the assessee company by passing a journal entry in the books of accounts would not come within the ambit of the words “loans or deposits of money” as mentioned in Section 269 SS.,Sunflower Builders Pvt. Ltd. 61 ITD 227, V.N. Parekh securities Pvt. Ltd. (ITA No.3316 & 3317/Mum/2004)
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