At this point out of crisis, the brand new appellant normally financial on just its Directors

Perform your address be exact same if the builder we.elizabeth. Mr. Z deposits currency which have Mr.X which cash is refunded because of the Mr. X in order to your towards expiry of guarantee months?

At that point of your time, new Manager away from his very own financing, transferred the sum of the on savings account of your appellant team

ANS: Retentions out-of contractor’sbills just like the ‘Security Deposit’–if deposit As per Para 39(c)out-of While the-seven Build Deals aforementioned amounts since the retentions.For this reason, that isn’t most best to name these types of safeguards deposits. He is retentions.Very, withholding wide variety regarding contractor’sbills and you can starting him or her shortly after guarantee period cannot attention condition 29(a) and/otherwise clause 30(d) out-of Setting 3CD. Given that cash is maybe not “received”.

However, if contractor dumps money with assessee and therefore money is refunded of the assessee to him to the expiration from assurance months – term 30(a) and/otherwise 31(b) will lured since matter is acquired.

Q.Mr. Mohan, Mate for the Meters/s GSM & Lovers contributed to the firm if not than by the cheque. If or not Mr. Mohan normally join the business if you don’t than of the cheque?

ANS: Repayment otherwise bill off total couples: In the event that somebody introduces capital inside the cash in the firm or withdraws the same with the tune out-of Rs 20,100000 or perhaps in overabundance Rs 20,000, then Provisions regarding point 269SS or 269T will not be lured given that introduction of funding or detachment of agency can not be known as money otherwise dumps. Number repaid by corporation to couples or vice versa commission to help you worry about and will not take the reputation off financing otherwise dumps in general legislation. Specifications from point 269SS aren’t applicable in order to such activities (CIT v. Lokhpat Flick Replace (Cinema) 304 ITR 172 (Raj.) Shrepak Companies compared to. Dy. CIT 64 ITD three hundred (Ahd – Trib) 82 TTJ 549.

Q.Mr. Ramesh & Co. acquired a loan vide cheque that’s Crossed however an Account Payee cheque. Can there be people punishment u/s 271D?

In the event a big change is available ranging from entered and you can restrict payeehair-splitting with this isn’t rationalized at least inside section 269SS/269T context it is thus warranted for the point 40 Good(3) contex.

Q. Wether lead deposit of money for the closely kept businesses savings account by the movie director try mortgage otherwise deposit not as much as area 269SS?

In the Mangala Designers Pvt. Ltd. vs. Addl CIT [ITA Nos. 1900 & 1901/Bang/2004-buy old 17-4-2006], this dilemma was experienced by https://www.perfectloans24.com/payday-loans-ne/central-city/ ITAT. The brand new Tribunal stored you to although the appellant-providers as well as Administrators are two additional judge organizations, the appellant is actually a directly stored business whose issues was addressed by Directors. Because was lacking fund in order to observe that cheques approved by it is actually eliminated, they must keep adequate harmony inside the Bank.

Ans: When head put of money is done in the directly held company’sbank account there would be no contravention away from part 269SS

No matter if this is certainly thought to be receiving the sum away from Manager, it can’t qualify due to the fact getting financing or accepting the newest places in true feel(on the reason for part 269SS). The new appellant, being directly kept team and the products being handled from the Manager, in general, he could be you to and the exact same.

This new Bangalore Counter regarding ITAT in Sri Renukeswara Rice Mills against. ITO(93 ITD 263) had kept in the context of point 40A(3) you to definitely in which the money are made if not than just by membership payee cheque directly in the lending company account of your own payee, they match towards the intention of our elected representatives without disallowance can be produced around part 40A(3). Applying the same idea, it may be opined when head deposit of cash is built in (directly kept) organization’s checking account there would be zero contravention away from area 269SS.