Create your address feel exact same in case the builder we.age. Mr. Z dumps currency with Mr.X which cash is refunded by the Mr. X so you’re able to your into expiry out-of warranty period?
At that point of time, the brand new Manager from his or her own financing, placed the sum on savings account of your appellant business
ANS: Retentions away from contractor’sbills since ‘Protection Deposit’–if or not put Depending on Para poder 39(c)of Because the-seven Design Contracts aforesaid numbers due to the fact retentions.Ergo, this is simply not very proper to-name these safety places. He or she is retentions.So, withholding quantity away from contractor’sbills and you may unveiling her or him after assurance several months will not appeal term 31(a) and/otherwise term 31(d) of Function 3CD. Because the money is perhaps not “received”.
Yet not, if the specialist deposits currency which have assessee and this money is reimbursed by the assessee so you’re able to your to your expiration from warranty several months – clause 29(a) and/or 29(b) usually drawn just like the count is received.
Q.Mr. Mohan, Mate into the Meters/s GSM & Partners triggered the business or even than because of the cheque. Whether Mr. Mohan can be sign up for the business otherwise than just from the cheque?
ANS: Installment otherwise acknowledgment of total partners: In the event the a partner brings up capital when you look at the cash in the firm otherwise withdraws a similar into track of Rs 20,100000 or perhaps in overabundance Rs 20,one hundred thousand, then Conditions out-of section 269SS or 269T shall never be lured while the regarding investment otherwise detachment out-of enterprise can not be known as financing or dumps. Amount paid down from the company so you’re able to lovers or vice versa fee so you’re able to care about and won’t make the character of financing otherwise deposits as a whole law. Terms out of area 269SS are not relevant so you’re able to such as for instance issues (CIT v. fast online payday loans Paris Lokhpat Flick Replace (Cinema) 304 ITR 172 (Raj.) Shrepak Organizations compared to. Dy. CIT 64 ITD three hundred (Ahd – Trib) 82 TTJ 549.
Q.Mr. Ramesh & Co. acquired a loan vide cheque that is Entered however a keen Membership Payee cheque. Could there be people punishment u/s 271D?
Regardless of if a significant difference can be obtained between entered and prevent payeehair-breaking on this isn’t rationalized about during the area 269SS/269T framework it is thus justified within the section 40 An excellent(3) contex.
Q. Wether lead deposit of cash when you look at the directly held organization’s family savings because of the manager try loan or put not as much as area 269SS?
In Mangala Builders Pvt. Ltd. versus. Addl CIT [ITA Nos. 1900 & 1901/Bang/2004-buy dated 17-4-2006], this dilemma was experienced by the ITAT. This new Tribunal held you to definitely whilst the appellant-providers and its Directors are two various other judge organizations, the new appellant try a directly kept business whose things is handled from the Administrators. Whilst is actually lacking financing and also to notice that cheques approved by using it try cleared, it must keep sufficient equilibrium within the Bank.
Ans: When lead put of money is created inside the closely kept company’sbank membership there would be no contravention out-of point 269SS
Though this will be regarded as researching the sum of out-of Director, it cannot qualify because getting financing or accepting the deposits within its true feel(on the reason for section 269SS). The brand new appellant, getting closely held company as well as the factors being managed by Director, generally, he could be you to definitely plus the same.
Brand new Bangalore Workbench out of ITAT from inside the Sri Renukeswara Grain Mills vs. ITO(93 ITD 263) got kept relating to section 40A(3) one to where money are formulated if not than by the account payee cheque directly in the financial institution account of one’s payee, they meets for the intention of the legislature no disallowance can be made not as much as part 40A(3). Applying the same principle, it can be opined if lead put of cash is actually built in (directly held) company’s family savings there would be zero contravention out-of part 269SS.
