Up until now off crisis, this new appellant normally bank through to just their Administrators

Manage their respond to feel exact same if the company we.elizabeth. Mr. Z places money having Mr.X and that money is reimbursed from the Mr. X to your into the expiration from promise period?

At that time of your time, the latest Manager out of his very own loans, placed the sum of in the savings account of one’s appellant team

ANS: Retentions away from contractor’sbills because the ‘Safety Deposit’–whether put As per Para poder 39(c)out of Once the-eight Framework Contracts aforesaid quantity once the retentions.Hence, it is not most proper to call such security deposits. He is retentions.Thus, withholding numbers from contractor’sbills and you may initiating them shortly after promise months cannot attention clause 31(a) and/or condition 30(d) from Form 3CD. Since money is maybe not “received”.

Although not, in the event that builder deposits money that have assessee which cash is refunded by assessee to him towards expiration out of promise months – clause 30(a) and/or 31(b) will drawn because the amount is received.

Q.Mr. Mohan, Lover inside M/s GSM & Lovers lead to the organization if not than simply by cheque. If Mr. Mohan can subscribe to the organization or even than just from the cheque?

ANS: Payment otherwise bill of add up to people: When the a partner raises financing when you look at the cash in the business otherwise withdraws an identical for the tune away from Rs 20,100 or in excess of Rs 20,100, up coming Specifications away from section 269SS or 269T shall not attracted as introduction of investment otherwise withdrawal from agency cannot be called as finance otherwise dumps. Matter paid back by enterprise so you can couples or vice versa percentage to mind and will not take the profile away from loan or places generally legislation. Arrangements of part 269SS are not appropriate in order to for example items (CIT v. Lokhpat Movie Change (Cinema) 304 ITR 172 (Raj.) Shrepak People compared to. Dy. CIT 64 ITD three hundred (Ahd – Trib) 82 TTJ 549.

Q.Mr. Ramesh & Co. obtained financing vide cheque that’s Crossed however an Membership Payee cheque. Could there be people penalty u/s 271D?

Regardless of if an improvement can be obtained between entered and restrict payeehair-breaking about is not justified at the least into the part 269SS/269T perspective but is thus justified inside the point 40 An effective(3) contex.

Q. Wether direct put of cash inside the closely stored business’s savings account from the director was loan or put under part 269SS?

During the Mangala Designers Pvt. Ltd. versus. Addl CIT [ITA Nos. 1900 & 1901/Bang/2004-order old 17-4-2006], this matter is sensed because of the ITAT. The fresh new Tribunal held one to whilst the appellant-team and its Administrators are two other courtroom organizations, the latest appellant try a directly kept organization whoever items is actually handled by Directors. Because it was short of funds in order to note that cheques awarded by using it is actually cleaned, they must remain sufficient harmony during the Financial.

Ans: When head put of cash is created when you look at the closely held company’sbank account there is no contravention regarding area 269SS

In the event this is thought to be finding the sum of the of Manager, it can’t meet the requirements once the taking that loan or taking the deposits with its real experience(to your purposes of point 269SS). Brand new appellant, getting closely kept company payday loans Salina in addition to affairs becoming addressed by the Manager, broadly speaking, he is one to and also the exact same.

The newest Bangalore Table out-of ITAT from inside the Sri Renukeswara Grain Mills compared to. ITO(93 ITD 263) had stored in the context of area 40A(3) you to definitely in which the repayments are manufactured if you don’t than simply of the membership payee cheque in direct the financial institution account of the payee, it matches on the aim of our elected representatives no disallowance can be made under part 40A(3). Applying the exact same concept, it can be opined that in case head put of money try produced in (directly kept) organization’s checking account there is zero contravention from section 269SS.